Robust Oil Demand Predicted

OPEC is still forecasting robust oil demand growth of 3.1 million bpd for 2022 and a further 2.7 million bpd in 2023, despite concerns of a recession, buoyed by "still-solid" economic performance in many countries and expected feedstock switching in power generation from gas to liquid fuels.
Global oil demand will be 102.73 million bpd in 2023 versus 102.72 million bpd forecast last month, the group said on Sept. 13 in its monthly market report. Oil traders had been concerned about weakening economic indicators, with Dated Brent falling 29% since June 14 to $93.21 per barrel as of Sept. 12, S&P Global reported.
"Oil demand in 2023 is expected to be supported by a still-solid economic performance in major consuming countries, as well as potential improvements in Covid-19 restrictions and reduced geopolitical uncertainties," OPEC said in the report.
The forecast for 3.1% global economic growth in 2023 includes fiscal measures in the EU and China, supporting growth toward the end of the year, it said.
"This fiscal support may at least counter-balance the anticipated downward momentum that some market observers forecast."