EIA trims global oil production forecast for 2023
The US Energy Information Administration (EIA) forecasts that global oil production will average 100.7 million b/d in 2023, down 600,000 b/d from its previous estimate.
PHOTO: EIA estimates that OPEC output will average 28.6 million b/d in the fourth quarter of 2022 and the first quarter of 2023. Getty Images
The EIA's October short-term energy outlook report, which echoes the International Energy Agency's (IEA) prediction that OPEC crude oil production will decline by 1 million b/d, estimates that OPEC output will average 28.6 million b/d in the fourth quarter of 2022 and the first quarter of 2023.
Given geopolitical factors, uncertain OPEC+ production and fear of a global recession hurting demand, EIA expects Brent to average around $93/bbl in the fourth quarter, and $95/bbl next year.
It predicts global demand for liquid fuels to rise by an average of 2.1 million b/d for this year, and by an average of 1.5 million b/d in 2023.
The Paris-based IEA also came out with a trimmed oil demand forecast today. It thinks oil demand will grow by 1.7 million b/d next year, which is 470,000 b/d less than it previously forecast. It argued that OPEC+'s 2 million b/d output quota cut announcement will prop up prices and could tilt major economies into a recession, which in turn could destroy demand.
By Konica Bhatt
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