OPEC on Tuesday said it expected to see robust global oil demand growth in 2023 with potential economic upside coming from a relaxation of China's zero-COVID policies, which this year have pushed the country's oil use into contraction for the first time in years.
World oil demand in 2023 will rise by 2.25 million barrels per day , or about 2.3%, the Organization of the Petroleum Exporting Countries said in a monthly report. The forecast was steady from November, after a series of"Although global economic uncertainties are high and growth risks in key economies remain tilted to the downside, upside factors that may counterbalance current and upcoming challenges have emerged as well," OPEC said in the report.
"A resolution of the geopolitical conflict in Eastern Europe and a relaxation of China's zero-COVID policy could provide some upside potential," the report said in a separate section. Chinese demand, hit by COVID containment measures, will average 14.79 million bpd in 2022, down 180,000 bpd from 2021, OPEC said. OPEC figures in another publication, the Annual Statistical Bulletin, show it rising in the 2017-2021 period. An annual contraction in Chinese demand for gasoline, diesel and jet fuel would be the first since 2002, according to Energy Aspects whichIn the report, OPEC nudged up its 2022 economic growth forecast to 2.8% and left 2023 steady at 2.5%. As well as the relaxation of China's COVID policy, the report listed other sources of upside including commodity price weakness. "Upside potential – or at least counterbalancing factors – may come from the U.S. Federal Reserve successfully managing a soft landing in the United States, as well as from a continued easing of commodity prices and a resolution of the tensions in Eastern Europe," OPEC said. Oil prices, which came close to the all-time high of $147 a barrel in March after Russia invaded Ukraine, have unwound most of their 2022 gains. Crude was trading around $80 on Tuesday.The report also showed that OPEC's production dropped in November after the wider OPEC+ alliance pledged steep output cuts to support the market amid the worsening economic outlook and weakening prices. For November, with prices weakening, OPEC+ agreed to a 2 million bpd reduction in its output target - the largest since the early days of the pandemic in 2020. OPEC's share of the cut is 1.27 million bpd. In the report, OPEC said its output in November fell by 744,000 bpd from October to 28.83 million bpd, led by top exporter Saudi Arabia and other large producers such as Iraq. OPEC compiles the figures using secondary sources. Based on a Reuters calculation using OPEC's figures, the 10 OPEC members covered by the OPEC+ agreement complied with 174% of the pledged supply cuts, because some members notably Nigeria and Angola are pumping well below their targets due to a lack of production capacity.Editing by Mark Potter and David Evans
Please follow us on Google to support us United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Donkervoort F22, 2022 Lexus GX 460 Driven, And 2022 Gulf Historic GP: Your Morning Brief | CarscoopsDonkervoort F22, 2022 Lexus GX 460 Driven, And 2022 Gulf Historic GP: Your Morning Brief | Carscoops carscoops
Read more »
Heisman Trophy outlook: The Pac-12’s best hope in 2023 might not be its 2022 winnerThe strong-armed quarterback finished eighth in the voting this season, providing him with a foundation to make a serious run in ’23.
Read more »
Trim Pickings: 2023 Nissan Rogue vs. 2023 Toyota RAV4The base models of the Nissan Rogue S and Toyota RAV4 LE are priced within $255 of each other, making for very close competition. Both of these models are well equipped with feature highlights that include LED headlights, tinted rear windows, cloth upholstery, satellite radio, and Apple CarPlay and Android Auto compatibility. On the safety front, both SUVs include a forward collision warning with automatic emergency braking system and automatic high-beam headlights.
Read more »
The Dashboard Console On Some Porsche 911s May Break When The Airbag Goes Off | CarscoopsThe Dashboard Console On Some Porsche 911s May Break When The Airbag Goes Off | Carscoops carscoops
Read more »
Heisman Trophy outlook: The Pac-12’s best hope in 2023 might not be its 2022 winnerNo player has won the Heisman in back-to-back seasons since Ohio State tailback Archie Griffin in 1974-75.
Read more »
The best winter jackets by temperature for 2022 (and heading into 2023)Find the best winter outerwear from coats that can laugh at the Arctic to jackets that are perfect to slip on while running to the car
Read more »