The increase in the world’s oil demand for 2023 has been revised by OPEC from 2.4 million to 2.5 million barrels per day. “The global oil market fundamentals remain strong despite exaggerated negative statements,” as per the Organisation of the Petroleum Exporting Countries monthly oil report published on Monday.
It pointed out that China’s crude import data for October hit a record 11.4 million barrels per day, significantly above the five-year average range. The report highlighted the strength and durability of the world’s oil demand by mentioning an anticipated increase in India’s crude imports in the fourth quarter of this year. Stronger-than-expected growth in Q4 2023 (October to December), particularly in non-OECD nations, was the reason for the upward revision.
Updated Global Oil Supply From a prior estimate of 1.7 million barrels per day, OPEC marginally upped its global oil supply forecast for non-OPEC production in 2023 to 1.8 million barrels per day, with the United States as the main contributor to this rise.
The organization cited monthly data as a more trustworthy indication, which showed a steady increase in U.S. oil production, and said that the growth in the country’s liquid supply is more substantial than weekly statistics suggested. Increased global crude runs and voluntary modifications by major oil-producing countries caused a decline in global crude stocks in the third quarter of 2023.
OPEC keeps the 6.3% growth rate for India’s economy in 2023 as its projection. Growth is mostly anticipated to come from the services sector, with improvements also anticipated in India’s industrial sector. In the second half of 2023, OPEC expects fiscal stimulus to continue supporting the market, even though consumption will be slower.
The monthly oil report notes India’s consistent growth in Q3 2023, with leading indicators signalling a favourable trend for the year-end. The report highlights broad-based expansion across major sub-sectors as the key support for India’s economic growth.
The trends are anticipated to continue in 2024, with a 5.9% growth forecast remaining unchanged.
