Global oil demand to rise 2% to new record in 2023, says IEA


World demand for oil will increase by more than 2% to a record 101.6 million barrels per day (bpd) in 2023, the International Energy Agency (IEA) said on Wednesday, even as prices soared. of oil diminish the future prospects.

The Paris-based IEA also said in its monthly report that supply was being restricted by sanctions on Russia for its invasion of Ukraine.

“Economic fears persist as several international institutions have recently released pessimistic outlooks,” the IEA said, predicting that demand would increase by 2.2 million bpd, or 2.2%, in 2023 compared to 2022 and exceed pre-dated levels. -pandemic.

“Likewise, tightening monetary policy, the impact of the rising dollar and rising interest rates on the purchasing power of emerging economies mean that risks to our outlook are concentrated on the downside,” he said.

Organization for Economic Co-operation and Development (OECD) economies would account for most of the demand growth in 2022, while China would lead gains in 2023 as it emerges from Covid-19 lockdowns.

China’s recent Covid-19 restrictions put the world’s biggest oil importer on track for its first drop in demand this century, the IEA said.

A general recovery in demand and tight supply due to sanctions on Russia and cautious production increases by OPEC+ pushed oil prices above $139 a barrel in March. This Wednesday, Brent is trading close to US$ 120 (R$ 614.36) a barrel.

But the IEA said supply will soon match demand. “After seven consecutive quarters of strong inventory purchases, slowing demand growth and increasing global oil supply towards the end of the year should help rebalance world oil markets.”

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