OPEC raised its forecast for oil demand growth in China in 2023 due to the country easing Covid-19 restrictions, but kept its estimate of global demand unchanged, citing potential downside risks to global economic growth.
According to correspondents, the Organization of the Petroleum Exporting Countries (OPEC) announced in its monthly report that global oil demand in 2023 will grow by 2.32 million barrels per day, equivalent to 2.3%. This forecast has not changed compared to last month’s OPEC report.
While the rapid growth of China’s oil demand could support the oil market, oil prices fell this week under the influence and failure of the Silicon Valley Bank, which caused fears about the emergence of a new financial crisis.
OPEC cited potential downside risks to the global economy as a result of higher interest rates. According to the OPEC report, the reopening of China after the cancellation of the strict Covid-19 policy in this country has greatly accelerated the growth of the global economy. However, the rapid growth of interest rates and the level of global debt may lead to negative results and have a negative impact on the growth dynamics of the world economy.
OPEC expects China’s oil demand to grow by 710,000 barrels per day (bpd) in 2023, up from the 590,000 bpd forecast in the group’s report last month. The group expects global demand to remain flat due to downward revisions in other regions.
According to Reuters, the OPEC report also showed that the group’s oil production rose in February despite OPEC + agreeing last year to cut production. According to OPEC statistics, the group’s oil production increased by 117 thousand barrels per day in February, reaching 28.92 million barrels per day.
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