IEA forecasts global oil demand to grow by 2 million b/d

The International Energy Agency (IEA) expects global oil demand to grow by 2 million b/d this year, up 100,000 b/d from its previous forecast in January.

PHOTO: Brent crude price chart. Getty Images

The IEA has revised its 2023 global oil demand forecast up for a third consecutive month, factoring in a demand recovery in China after it lifted Covid-19 restrictions. The IEA expects nearly half of global oil demand growth to come from China.

The energy watchdog has forecast global oil demand at 101.9 million b/d for this year.

Uncertainty in meeting additional oil demand looms over the market, primarily as refined product exports from Russia are expected to take a hit following the sanctions and price caps imposed on Russian refined products on 5 February.

But upcoming refining capacities in Africa and the Middle East are likely to fill some of the fuel production gap left by a lack of Russian products.

According to the IEA, the core OPEC group produced 29.06 million b/d of oil in January, which was 830,000 b/d lower than its target.

Russia, a member of the broader OPEC+ group, produced 9.77 million b/d in January, falling short of its 10.48 million b/d target.

By Nithin Chandran

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