OPEC maintains its expectations for growth in global oil demand during 2023 and 2024

September 12, 2023 (QNA) - The Organization of the Petroleum Exporting Countries (OPEC) maintained its forecast for strong growth in global oil demand in 2023 and 2024, noting at the same time the possibility of a deficit in oil supply in the global market of more than 3 million barrels per day during the fourth quarter of next year.

The organization said, in its monthly report today, that the growth of oil demand during the current year remained unchanged at 2.4 million barrels per day, after reviewing data received from the United States, China and other countries, pointing out that it expects global demand to rise by 2.25 million barrels per day next year.

OPEC attributed this to signs that major economies are performing better-than-expected, given the recovery of tourism and air travel globally, as well as supporting China's decision to lift restrictions imposed to curb the spread of the Covid-19 pandemic on increasing oil demand, despite unfavorable economic conditions such as high interest rates and inflation.

On the other hand, OPEC data showed the possibility of a deficit in oil supply in the global market by more than 3 million barrels per day during the fourth quarter of next year, which could be the largest deficit in more than 10 years, as Saudi Arabia extended its decision to reduce oil production, and Russia's decision to reduce its exports until the end of this year.

Last week, Saudi Arabia decided to extend the voluntary reduction in oil production of one million barrels per day, which began to be implemented last July, for another three months until the end of December 2023, while Russia also announced the extension of the voluntary reduction of its oil exports of 300,000 barrels per day until the end of this year.

It is noteworthy that the member countries of the "OPEC +" alliance agreed, on the fifth of October 2022, to collectively reduce production by two million barrels per day, starting from November of the same year until the end of 2023.