OPEC sticks to 2023 global oil demand growth view, ups forecast for China

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OPEC kept its expectations for global oil demand growth in 2023 unchanged, despite raising estimates of Chinese oil demand growth for the year.

In its monthly oil market report, released today, March 14, the group expected global oil demand to grow by 2.32 million barrels per day (bpd), or 2.3%, in 2023 — the same forecast issued last month.

Also, this year, Chinese oil demand will gain 710,000 bpd, which is 120,000 barrels higher than OPEC’s outlook last month.

In addition, data showed an uptick in OPEC nations’ crude oil output during February. For the month, production increased by 117,000 bpd to reach 28.92 million bpd.

OPEC attributed the adjustment of its Chinese oil demand growth forecast to the reopening of the country's economy after the lifting of COVID-related curbs, which had restricted commercial activities. This, according to the group, will add impetus to global economic growth.

On the other hand, the organization warned that the rapid rise in interest rates and debt levels would negatively impact global economic growth.