In a statement outlining its expectations for the state of the global economy in 2023, OPEC predicted that Chinese oil demand would increase this year as a result of the country’s relaxation of its COVID-19 restraints and contribute to global growth.
The Organization of the Petroleum Exporting Countries (OPEC) stated in a monthly report that global demand will increase by 2.22 million barrels per day (bpd), or 2.2%, in 2023. This prediction was unchanged from last month’s forecast, which had ended a string of downgrades.
If it happens, a stronger economy could result in higher revisions to demand and support oil prices, which have risen in 2023 on expectations of Chinese demand. In 2023, OPEC projects that Chinese demand will increase by 510,000 bpd.
According to the report, OPEC’s crude oil production increased by 91,000 bpd in December to 28.97 million bpd, led by a rebound in Nigeria which is exempt from voluntary cuts. The country boosted output by 91,000 bpd to 1.27 million bpd in December, OPEC said.