OPEC forecasts slower global oil demand growth in 2023

World oil demand is projected to grow further next year, albeit at a slower pace than in 2022, according to a report published on Tuesday by the Organization of the Petroleum Exporting Countries (OPEC).

OPEC said in its monthly report that it expects the global oil demand to rise by 2.7 million barrels per day (bpd) in 2023, while this year’s demand growth forecast remains unchanged at 3.4 million bpd.

The oil alliance said the 2023 demand growth forecast is based on better containment of the COVID-19 pandemic and expected firm global economic growth.

However, OPEC noted that downside risks remain for oil demand, including pandemic-related challenges and geopolitical uncertainties.

OPEC said in the report that it forecasts the world gross domestic product to grow by 3.2 percent in 2023, assuming “the pandemic, geopolitical developments in eastern Europe and global financial tightening amid rising inflation do not negatively impact the 2023 growth dynamic to a major degree.” ■

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