Global oil demand to hit new record in 2023

Global oil demand to hit new record in 2023

Heading for a new record global oil demand within 2023.

THE International Energy Agency (IEA, IOE) as it announced it revised upward its forecast for growth in global oil demand in 2023, which is headed for “the highest level ever recorded” and is forecast to reach 102.2 million barrels per day, according to its monthly report which was released today.

Global oil demand already “set a record 103 million barrels per day in June, with a new peak likely in August”underlines the organization based in Paris.

“Global oil demand is reaching record highs, boosted by summer air travel, the increased use of oil in electricity production and the steep rise in Chinese petrochemical activity,” the International Energy Agency points out, as reported by the Athens News Agency.

For the year as a whole, “global oil demand is expected to increase by 2.2 million barrels per day” over 2022 “to reach 102.2 million barrels per day in 2023, with China accounting for more than 70% of the increase”, clarifies the organization.

According to newsbeast.gr, this is “its highest level ever recorded”according to the International Energy Agency which already forecast in February a record 101.9 million barrels per day for the current year, after 99.9 million barrels per day in 2022 and 97.6 million barrels per day in 2021 .

This thirst for oil comes against a backdrop of tensions in markets, as “global oil supply fell in July by 910,000 barrels per day to 100.9 million barrels per day. A sharp cut in Saudi production in July caused OPEC+ production to fall by 1.2 million bpd to 50.7 million bpd, while non-OPEC+ oil volumes rose by 310,000 bpd to reach 50.2 million barrels per day,” the agency said.

As the world is urged to reduce its consumption of climate-damaging fossil fuels to limit global warming to +1.5 degrees Celsius above pre-industrial levels, the International Energy Agency expects the increase to slow in 2024 of oil demand.

“As the post-pandemic recovery continues and the energy transition accelerates, growth will slow in 2024 to 1 million barrels per day,” the agency predicts.

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