Global oil demand will reach 102.1 million barrels per day this year
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July 21, 2023, 11:05 AM
According to a report by the U.S. Drilling Zone website on July 17, 2023, the International Energy Agency (IEA) stated in its latest issue of the Oil Market Report (OMR) that global daily oil demand will increase by 2.2 million barrels this year, and daily demand will reach a record high of 102.1 million barrels.
The IEA predicts that global oil demand growth will slow to 1.1 million barrels a day next year. "The challenging economic environment is putting pressure on global oil demand growth, especially as many developed and developing countries have significantly tightened monetary policy over the past 12 months," the IEA said.
The IEA predicts that global oil production will increase by 1.6 million barrels per day this year to 101.5 million barrels, of which daily oil production from non-OPEC + countries is expected to increase by 1.9 million barrels. The IEA predicts that global oil supply will increase by 1.2 million barrels per day next year, reaching a new high of 102.8 million barrels per day, with non-OPEC + countries contributing all the growth.
According to the report, since the first production cut was implemented in November last year, production cuts by Saudi Arabia and core OPEC + members have been offset by increased production by other oil-producing countries. Daily supply of oil from the United States increased by 610,000 barrels, with liquefied natural gas production jumping to a record high, while biofuels showed a seasonal increase. However, the IEA predicts that global oil supply may fall by more than 1 million barrels a day in July as Saudi Arabia implements larger production cuts.
Observed global oil inventories increased by 19.4 million barrels in May, reaching the highest level since September 2021, as surging Asian demand increased oil inventories in non-Organization for Economic Cooperation and Development (OECD) countries by 44.2 million barrels. OECD industrial inventories increased by 170,000 barrels per day in May.
In the April OMR, the IEA predicted that world oil demand would increase by 2 million barrels a day this year to 101.9 million barrels. The April OMR pointed out that non-OECD countries will account for 90% of the increase, boosted by the economic recovery of major Asian countries.
This year, the IEA significantly raised its global oil demand forecast by 500,000 barrels per day for the first quarter and raised its demand forecast for the whole year by nearly half. As a result, global oil consumption will increase by 2 million barrels per day this year, reaching an average of 101.9 million barrels per day.
Meanwhile, investment in fossil fuel supply will increase by more than 6% this year to about $950 billion, according to a separate IEA report, based on an analysis of announced spending plans by large and medium-sized oil, gas and coal companies.
However, the IEA said that after 2026, oil use for transportation fuels will decline and growth in oil demand will "slow to almost stagnation in the next few years." Source: Sinopec News Network
The IEA predicts that global oil demand growth will slow to 1.1 million barrels a day next year. "The challenging economic environment is putting pressure on global oil demand growth, especially as many developed and developing countries have significantly tightened monetary policy over the past 12 months," the IEA said.
The IEA predicts that global oil production will increase by 1.6 million barrels per day this year to 101.5 million barrels, of which daily oil production from non-OPEC + countries is expected to increase by 1.9 million barrels. The IEA predicts that global oil supply will increase by 1.2 million barrels per day next year, reaching a new high of 102.8 million barrels per day, with non-OPEC + countries contributing all the growth.
According to the report, since the first production cut was implemented in November last year, production cuts by Saudi Arabia and core OPEC + members have been offset by increased production by other oil-producing countries. Daily supply of oil from the United States increased by 610,000 barrels, with liquefied natural gas production jumping to a record high, while biofuels showed a seasonal increase. However, the IEA predicts that global oil supply may fall by more than 1 million barrels a day in July as Saudi Arabia implements larger production cuts.
Observed global oil inventories increased by 19.4 million barrels in May, reaching the highest level since September 2021, as surging Asian demand increased oil inventories in non-Organization for Economic Cooperation and Development (OECD) countries by 44.2 million barrels. OECD industrial inventories increased by 170,000 barrels per day in May.
In the April OMR, the IEA predicted that world oil demand would increase by 2 million barrels a day this year to 101.9 million barrels. The April OMR pointed out that non-OECD countries will account for 90% of the increase, boosted by the economic recovery of major Asian countries.
This year, the IEA significantly raised its global oil demand forecast by 500,000 barrels per day for the first quarter and raised its demand forecast for the whole year by nearly half. As a result, global oil consumption will increase by 2 million barrels per day this year, reaching an average of 101.9 million barrels per day.
Meanwhile, investment in fossil fuel supply will increase by more than 6% this year to about $950 billion, according to a separate IEA report, based on an analysis of announced spending plans by large and medium-sized oil, gas and coal companies.
However, the IEA said that after 2026, oil use for transportation fuels will decline and growth in oil demand will "slow to almost stagnation in the next few years." Source: Sinopec News Network