Oil Demand To Rise By 2mbpd In 2023






Oil Demand To Rise By 2mbpd In 2023

Experts have forecasted that global oil markets would increase by at least 2 million barrels a day by next year taking it back above the 2019 level for the first time since the COVID-19 pandemic struck in early 2020.




ADVERTISEMENT

Consequently, the Organisation of Petroleum Exporting Countries(OPEC) producers will need to pump crude at the fastest pace in five years in 2023, if they are to balance oil supply and demand as capacity constraints suggest they may struggle.
ADVERTISEMENT
The latest forecasts from the International Energy Agency(IEA), the US Energy Information Administration and the OPEC, all show global oil demand rising strongly again in 2023, despite growing fears over mounting inflation and weakening economic growth.
ADVERTISEMENT

A lack of investment in new crude production capacity means that the OPEC group of producers will need to pump more to meet that demand.
ADVERTISEMENT
All three forecasters see global oil demand increasing by at least 2 million barrels a day next year, taking it back above the 2019 level for the first time since the Covid-19 pandemic struck in early 2020.
ADVERTISEMENT

The forecasters at the producer group are much more bullish about oil demand than their counterparts in the IEA and EIA. Combining growth estimates for 2022 and 2023, they see an increase over the two years of more than 6 million barrels a day.

That compares with 3.9 million barrels a day seen by the IEA and 4.3 million barrels a day from the EIA.
ADVERTISEMENT

sgt new updateCLICK TO EXPLORE THE LATEST CONTENTS FROM SGT, ALSO SCROLL DOWN BELOW TO SEE SGT POPULAR POST AFTER CONTENTS



ADVERTISEMENT

The latest report from OPEC assumes that neither the Covid pandemic, the Russian invasion of Ukraine, nor global financial tightening amid soaring inflation undermines economic growth to a significant degree and that major economies “revert back towards their growth potentials.” It does note, though, that the uncertainties around its forecast “remain to the downside.”
ADVERTISEMENT

OPEC sees that growth taking global oil demand to 103 million barrels a day on average in 2023. The IEA and EIA see the figure at 101.3 million barrels and 101.6 million barrels a day respectively. ADVERTISEMENT
Those demand numbers put growing pressure on the OPEC countries to pump more, even as most of them are already producing as much as they can.
ADVERTISEMENT

Combining the demand and non-OPEC supply outlooks, the 13 members of OPEC will need to deliver more than 30 million barrels a day on average in 2023, according to both OPEC and the IEA. The EIA outlook puts the figure at 29.4 million barrels a day.
ADVERTISEMENT

That’s not a record production level for the group, but it would be the highest since 2018, according to OPEC’s own figures. More importantly, it would push the group’s spare capacity to a multi-year low of about 2 million barrels a day, based on Bloomberg’s assessment of sustainable production capacities in OPEC countries.

The last time the current members of OPEC collectively pumped more than 30 million barrels a day, the combined output of five of them Nigeria, Algeria, Iran, Libya and Venezuela was almost 2.75 million barrels a day higher than it was in June. Just three members Iraq, Saudi Arabia and the United Arab Emirates pumped more last month than they did on average in 2018.
AD






Copyright SMACIN GRACEFULL TEAM.

All rights reserved. This material, and other digital content published on SGT website, should not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from SGT.
Contact us @:
sgt4succsess@gmail.com | follow SGT blog post to get automatic updates when new contents are published here

click the icon @ the top left of your screen to follow SGT from the menu page.
Like and follow SGT fans page on facebook and on other social media platforms above this site
Kindly share SGT contents / post to your social media walls as you keep following SGT for the latest and exclusive contents right here.

You can also join SGT community here


for a wonderfull communicating experience as one big happy family with loads of goodies and excitment, where we all collaborate together in group charts, live video conference sessions of up to 48 poeple at once and other interesting features available.


ADVERTISMENT



Welcome to SGT FORUM SECTION!
Please keep conversations in the forum courteous and on-topic, to foster productive and respectful conversations.

Please Take note of the following as you comment and communicate with others in the forum:



. Severe Toxicity
. Insult of any kind
. Profanity
. Identity attack
. Threat
. External links
. Religious argument
. Sexually explicit
will not be allowed in the forum, as moderators are on always to ensure a smooth and respectfull conversation for all in the forum.