The Organization of the Petroleum Exporting Countries (OPEC) has revised its forecast for China’s oil demand growth in 2023, citing the easing of COVID-19 restrictions in the country. However, the global demand forecast remains unchanged, as OPEC highlights potential downside risks to growth in other regions.
OPEC stated in its monthly report that it made minor upward adjustments to China’s oil demand growth projection, reflecting the country’s better-than-expected economic performance. Conversely, other regions are expected to experience slight declines in oil demand due to economic challenges that may impact growth.
According to OPEC’s report, world oil demand is projected to increase by 2.33 million barrels per day (bpd), equivalent to a 2.3 percent growth rate in 2023. This figure remains virtually unchanged from the previous forecast of 2.32 million bpd.
The organization emphasized that various factors pose risks to the global economic outlook, including potential debt-related challenges, geopolitical uncertainties, persistent inflation, and the unresolved US debt ceiling issue. OPEC acknowledges that these factors could have economic consequences and impact oil demand.
As OPEC continues to monitor global economic conditions, its latest report highlights the importance of considering both positive and negative factors affecting oil demand. The organization remains vigilant in assessing the potential impacts of various economic challenges and uncertainties on the global oil market.
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