November 15, 2022 09:19 GMT
IEA Cuts 2023 Oil Demand Growth Forecast on Mounting Economic Headwinds
IEA cuts 2023 oil demand growth forecast by 40kb/d to 1.6mb/d as mounting economic headwinds impede gains according to the latest Oil Market Report.
- China’s persistently weak economy, Europe’s energy crisis, burgeoning product cracks and the strong US dollar are all weighing heavily on consumption.
- IEA raised the 2022 oil demand forecasts by 170kb/d to 99.8mb/d and raised 2023 by 130kb/d to 101.4mb/d.
- Global oil supply is forecast to fall by 1mb/d for the remainder of the year as OPEC+ cuts and an EU ban on Russian crude come into effect. Global production for 2022 is forecast at 99.9mb/d and 2023 at 100.7mb/d.
- New refinery capacity coming online will go some way to offset potential losses from Russia. Refinery runs are forecast to increase by 2.3mb/d in 2022 and 1.4mb/d next year.
- The EU ban on seaborne Russian oil exports mean 1.1mbpd of crude and 1mbpd of products need to be replaced.