OPEC raises China's oil demand forecast for 2023

VIENNA - The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday further raised its forecast for the growth in China's oil demand in 2023 due to "better-than-expected performance in China's economy," although it kept the projections for this year's global total demand unchanged.

In its monthly report for June, OPEC said it expected China's oil demand in 2023 to increase by 840,000 barrels per day (bpd) to 15.7 million bpd. The organization's forecast last month put China's oil demand growth at 800,000 bpd this year.

"Beyond expectations, oil demand in China posted considerable 3 million bpd year-on-year growth in April, following already healthy 1.4 million bpd year-on-year growth in March," the report said, citing the country's "healthy economy activity amid strong petrochemical industry requirements."

OPEC left the forecast for this year's global oil demand steady, predicting a year-on-year growth of 2.3 million bpd.

The organization noted the minor downward adjustments made to the oil demand of the countries of the Organization for Economic Co-operation and Development (OECD), citing "weak performance in the second quarter."

OPEC on Tuesday also kept its forecast of global economic growth of 2.6 percent in 2023 unchanged.

OPEC and its allies, a group known as OPEC+, announced on June 4 that they would deepen production cuts throughout 2024 by slashing another 1.393 million barrels of crude oil production each day. Nine members of OPEC+ would also extend the existing voluntary production cut throughout 2024.

However, the recent announcements from OPEC+ have not provided sustained support for oil prices, with the West Texas Intermediate (WTI) crude dipping below $70 a barrel amid lingering concerns over the economic outlook and demand.