The Organization of the Petroleum Exporting Countries (OPEC) is maintaining its forecast for strong growth in global oil demand in 2022 and 2023, citing signs that major economies are doing better than expected despite headwinds such as soaring inflation.
Oil demand will rise by 3.1 million b/d in 2022 and 2.7 million b/d in 2023, unchanged from the previous month, OPEC said in its monthly report.
"Oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in COVID-19 restrictions and reduced geopolitical uncertainties," OPEC said.
The group and allies including Russia, known as OPEC+, have been boosting oil production this year as they look to lift record output cuts imposed in 2020 following a drop in demand due to the pandemic. However, OPEC+ has failed to deliver on its planned output increase in recent months due to underinvestment in oil fields by some OPEC members and falling Russian output.
OPEC’s monthly report showed that OPEC’s production increased in August, rising by 618,000 b/d to 29.65 million b/d, largely due to Libya’s recovery from disruptions.
