LogIn LogOut

IEA Says World Oil Demand to Rise 2% in '23

June 15, 2022

Copyright chakisatelier/AdobeStock
Copyright chakisatelier/AdobeStock

World oil demand will rise more than 2% to a record high of 101.6 million barrels per day (bpd) in 2023, the International Energy Agency said on Wednesday, although sky-high oil prices and weakening economic forecasts dimmed the future outlook.

The Paris-based IEA also said in its monthly report supply was being constrained because of sanctions on Russia over its invasion of Ukraine.

"Economic fears persist, as various international institutions have recently released downbeat outlooks," the IEA said, forecasting demand would rise 2.2 million bpd, or 2.2%, in 2023 compared to 2022 and would exceed pre-pandemic levels.

"Similarly, tightening central bank policy, the impact of a soaring U.S. dollar and rising interest rates on the purchasing power of emerging economies mean the risks to our outlook are concentrated on the downside," it said.

Advanced economies in the Organisation for Economic Co-operation and Development (OECD) would account for most demand growth in 2022, while China would lead the gains in 2023 as it emerges from COVID-19 lockdowns.

China's recent COVID-19 curbs put the world's largest oil importer on track for its first fall in demand this century, the IEA said.

The overall demand recovery and constraints on supply because of sanctions on Russia and cautious production increases by OPEC+ pushed oil prices above $139 a barrel in March. Brent crude LCOc1 was trading around $120 on Wednesday.

But the IEA said supplies would soon match demand, adding: "After seven consecutive quarters of hefty inventory draws, slowing demand growth and a rise in world oil supply through the end of the year should help world oil markets rebalance."

The IEA said the balance could be upset by tougher sanctions on Russia, a steeper recovery in Chinese demand, supply outages in Libya and limited spare production capacity among OPEC+ states.

(Reuters reporting by Noah Browning; Editing by Jason Neely and Edmund Blair)

Categories: Energy Oil Oil & Gas


Current News

Philippines Must Find Way to Exploit South China Sea Resources, says President Marcos

Philippines Must Find Way to Exploit South China Sea Resources, says President Marcos

MMA Offshore Sells Batam Shipyard

MMA Offshore Sells Batam Shipyard

Valeura Energy Books Tanker for Gulf of Thailand Oil Field

Valeura Energy Books Tanker for Gulf of Thailand Oil Field

Australia Court Ruling on Santos Raises Risks for Offshore Gas Projects

Australia Court Ruling on Santos Raises Risks for Offshore Gas Projects

Keel Laying Ceremony Held for Two Shanghai Electric SOVs

Keel Laying Ceremony Held for Two Shanghai Electric SOVs

Malaysia's Petronas Posts Q3 Profit, Warns of Continuing Market Volatility

Malaysia's Petronas Posts Q3 Profit, Warns of Continuing Market Volatility

Inmarsat to Roll Out IoT Solution to More than 60 Zamil Offshore Vessels

Inmarsat to Roll Out IoT Solution to More than 60 Zamil Offshore Vessels
photo

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com