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OPEC predicts increase in global oil demand in 2023, despite growth in renewable energy

Written by Bruno Teles
Published 14/03/2023 às 19:14
Updated 15/03/2023 às 00:57
OPEC
OPEC (photo/disclosure)

OPEC - Organization of Petroleum Exporting Countries released a report this Tuesday (14) that, for the year 2023, there will be an increase in global demand for oil by 2,3 million barrels per day (bpd) .

For the 2022 result, OPEC reiterated its estimate of increase in global demand of 2,5 million barrels per day. OPEC expects demand from Organization for Cooperation and Development (OECD) members alone to grow by around 200 bpd this year. Outside the OECD, consumption is expected to increase by around 2,1 mb/d in 2023.

Quotation outside the group

OPEC maintained its forecast for an increase of 1,4 million bpd in oil supplies from countries outside the group in 2023, according to a monthly report. The countries that will most contribute to the increase in supply in 2023 are United States, Brazil, Norway, Canada, Kazakhstan and Guyana, said OPEC. On the other hand, supply from Russia is expected to decrease.

For 2022, OPEC reiterated its estimate of an increase in supply of 1,9 million barrels per day. In the report, OPEC also said its production in February increased by 117.000 bpd from January to an average of 28,92 million bpd, according to secondary sources.

Gross Domestic Product will continue to grow

OPEC maintained its forecast of gross domestic product growth (GDP) of 2,6% in 2023, according to a monthly document. For 2022, the Cartel slightly raised its forecast for world GDP growth, from 3,1% to 3,2%.

For this year, OPEC reiterated its growth forecasts of 1,2% for the US and 0,8% for the euro zone. As far as China is concerned, the cartel continues to predict a growth of 5,2% in 2023.

UAE will not leave OPEC, even after speculation

The UAE has disclosed that it has no plans to withdraw from Organization of Petroleum Exporting Countries (OPEC). Oil markets have been rocked by concerns that the UAE is in internal discussions over its withdrawal, a move that could free up the country to increase production amid growing disagreements with Saudi Arabia. The fall in prices of commodities was triggered by a report in the Wall Street Journal.

The UAE has openly and privately said that it will comply with the real OPEC deal for at least this year. You Emirados Arabes Unidos, one of the world's biggest oil producers, have been arguing for years which alliances would best serve their long-term interests as they seek to take advantage of their newly expanded production capacity.

What is OPEC?

via Brasil Escola

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 2.300 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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