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IEA Raises 2023 Oil-Demand Forecast To A Record 101.7mbpd

OIL

IEA increased its global oil demand forecast which is set to rise by 1.9mbpd in 2023 to a record 101.7mbpd, with half the gain attributed to China following the lift of its Covid restrictions according to the Monthly IEA Oil Market Report.

  • World oil supply growth in 2023 is estimated to slow to 1mbpd, following last year’s OPEC+ led growth of 4.7mbpd. An overall non-OPEC+ rise of 1.9 mb/d will be tempered by an OPEC+ drop of 870 kb/d due to expected declines in Russia.
  • Global refinery activity was steady in December as US runs fell 910kbpd due to weather-related outages, but higher runs in Europe and Asia offset the fall.
  • After an increase of 2.1mbpd in 2022, refinery throughputs are set to grow by 1.5mbpd in 2023, helped by 2.2mbpd of capacity additions between 4Q22 and end-2023.
  • Russian oil exports fell by 200kbpd month on month in December to 7.8mbpd, as crude shipments to the EU declined after the EU crude embargo and G7 price cap came into effect.
  • Russian diesel exports surged to a multi-year high of 1.2mbpd, of which 720kbpd was destined for the EU.

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