OPEC holds 2023 oil demand view steady, warns on economic outlook

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OPEC left its 2023 global oil demand growth forecast steady for a fourth month on Tuesday, although the producer group warned that the world economy faced rising uncertainty and slower growth in the second half of the year.

World oil demand in 2023 will rise by 2.35 million barrels per day (bpd), or 2.4%, the Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report.

This was virtually unchanged from 2.33 million bpd forecast last month.

“There are rising uncertainties regarding economic growth in the second half of 2023 amid ongoing high inflation, already elevated key interest rates and tight labour markets,” OPEC said in the report.

“Moreover, it is still unclear as to how and when the geopolitical conflict in Eastern Europe might be resolved,” it said, referring to Ukraine.

OPEC+, which comprises OPEC, Russia and other allies, has been taking more steps to support the oil market in 2023.

On June 4 it announced its second package of output cuts since April. Crude prices, however, have remained under pressure from concern over slowing economic growth and demand.


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