Oil demand will exceed pre-pandemic levels

Oil demand is projected to improve greatly by 2023 according to the International Energy Agency (IEA)

Global oil demand will exceed the level before the Covid-19 pandemic until 2023, according to the International Energy Agency (IEA), which estimates that world crude oil consumption will reach 101.6 million barrels per day (mb /d).

In its latest monthly bulletin, the agency attached to the Organization for Economic Cooperation and Development (OECD) points out that, although higher prices and weak economic prospects are moderating the increase in consumption, the expected resurgence of China it will drive demand next year, with growth accelerating from 1.8 mb/d in 2022 to 2.2 mb/d in 2023.

Also, in contrast to 2022, when the OECD will lead the expansion of oil consumption in the world, the IEA anticipates that in 2023 it will be the economies not belonging to the “think tank” of the advanced countries that will be responsible for almost 80% of the growth Of demand.

In terms of supply, the agency expects non-OPEC countries and their allies, the group known as OPEC+, to lead the increase in supply, with 1.9 mb/d this year and 1.8 mb/d this year. next’s.

In the case of the OPEC+ countries, the IEA warns that total production could fall in 2023 as a result of the sanctions imposed on Russia and potential adjustments in the pumping of producers in the Middle East. Thus, assuming a rebound in Libyan supply, the organization’s supply would increase by 2.6 mb/d this year.

“Global oil supply may struggle to keep pace with demand next year as tighter sanctions force Russia to shut down more wells and several producers face capacity constraints”, the IEA warns.

K. Tovar

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Source: El Pais

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