OPEC revises down world oil demand growth for 2022 and 2023

According to OPEC's most recent monthly oil market report, oil demand in the OECD will rise by around 1.3 million bpd this year, as will demand in non-OECD countries by 1.3 million bpd. Demand in the OECD is expected to rise by 0.3 million bpd next year, while demand in the non-OECD is expected to increase by 1.9 million bpd.

The second quarter of this year was revised up due to higher-than-expected oil demand in the major OECD consuming countries. However, due to China's «zero COVID-19» policy, ongoing geopolitical uncertainties, and weaker economic activity, oil demand in the third and fourth quarters has been revised downward.

The report said that oil demand growth next year is anticipated to be challenged by economic activity uncertainties, COVID-19 containment measures and geopolitical developments.

Total oil demand is now projected to average 99.6 million bpd in 2022 and 101.8 million bpd in 2023.

Global oil supply increases

The global oil supply in October increased by around 0.7 million bpd compared to the previous month, averaging 101.5 million bpd.

OPEC crude oil production averaged 29.49 million bpd in October, a month-on-month decrease of about 210,000 bpd. During this period, crude oil production in OPEC increased the most in Nigeria and Iraq, while production in Saudi Arabia and Angola declined.

The share of OPEC crude oil in total global production decreased by 0.4 percentage points to 29.1% in October compared to the previous month.