OPEC kept its forecast for global demand growth unchanged, attributing this to possible bearish factors such as the US debt ceiling.
In its monthly report, the organization said global oil demand in 2023 will grow by 2.33 million barrels per day, or 2.3%. This does not imply a significant change from last month’s forecast of 2.32 million barrels per day.
OPEC said in the report that it made “slightly upward adjustments on the back of better-than-expected performance of the Chinese economy, while other regions are expected to experience a slight decline due to likely economic challenges. to affect the demand for oil”.
The OPEC+ alliance, which includes OPEC, Russia and other allies, surprised the oil market on April 2 by announcing another drop in production, in addition to existing cuts.
Oil prices rose initially, but came under pressure from continued interest rate hikes and concerns about the US debt ceiling.
Estimates for global demand growth remained unchanged for the third consecutive month, and OPEC maintained its forecast for economic growth for 2023 at 2.6%, citing possible downside factors such as stubborn inflation and increased debt payments due to higher interest rates.
“With the potential for further debt issues, geopolitical uncertainties remain and inflation persists,” OPEC said in its economic commentary.
“In addition, the issue of the US debt ceiling is not yet resolved, which may have economic consequences,” she added.
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