by Alex Lawler

LONDON (Reuters) – The Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand growth for 2023, citing China’s easing of measures related to the COVID-19 pandemic and slightly more optimistic outlook for the global economy.

Global oil demand will increase this year by 2.32 million barrels per day (bpd), up 2.3% year on year, OPEC said in a monthly report on Tuesday.

The forecast, which is 100,000 bpd higher than January’s, marks the first upward revision by the oil cartel in months.

Rising demand, particularly in China, could support oil prices, which have remained relatively stable since the end of last year.

“Key to oil demand growth in 2023 will be China’s reversal of its mobility restrictions and the effect that will have on the country, the region and the world,” OPEC said in the report. .

OPEC expects Chinese demand, dampened in 2022 by COVID-19 restrictions, to grow by 590,000 bpd in 2023, from an estimated 510,000 bpd in January.

OPEC is also bullish on the economic outlook, and raised its global economic growth forecast for 2023 to 2.6% from 2.5% last month.

However, the group is still counting on a slowdown linked to high inflation and further increases in interest rates.

“Downside risks are apparent and may include further geopolitical tensions in Eastern Europe, China’s ongoing domestic challenges amid the pandemic, and potential fallout from China’s still-fragile real estate sector,” the statement said. OPEC.

The report said OPEC crude oil production in January fell 49,000 bpd to 28.88 million bpd.

(Report by Alex Lawler, Dina Kartit, edited by Blandine Hénault)

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