OPEC keeps world oil demand growth unchanged for 2023

The Organization of Petroleum Exporting Countries (OPEC) maintained global oil demand growth for 2023, highlighting US oil demand, which is expected to exceed 2019 levels.

According to OPEC's most recent monthly oil market report published Tuesday, oil demand will grow by 2.2 million barrels per day (bpd) in 2023 to reach 101.8 million bpd, supported by expected geopolitical improvements and the containment of COVID-19 in China.

Growth in the OECD is projected at 300,000 bpd to reach 46.5 million bpd, while growth in the OECD Americas is expected to climb firmly, with US oil demand rising above 2019 levels, mainly due to the demand recovery in transportation fuels and light distillate.

OECD Europe and Asia Pacific, however, are not forecast to surpass the 2019 consumption levels.

In 2022, total oil demand is projected to average 99.6 million bpd, which is under intense pressure caused by several uncertainties, including global economic developments, COVID-19 containment measures in China and ongoing geopolitical tensions.

Global oil supply increases

In November, global oil supply increased by around 43,000 bpd month on month, averaging 101.5 million bpd. This figure is 3.2 million bpd higher than the previous year.

OPEC's crude oil production averaged 28.83 million bpd in November, a month-on-month decrease of about 744,000 bpd. During this period, crude oil production in OPEC increased the most in Nigeria and Angola, while production in Saudi Arabia, the United Arab Emirates and Kuwait declined.

The share of OPEC crude oil out of total global production decreased by 0.7 percentage points to 28.4% in November compared to the previous month.