The Organization of the Petroleum Exporting Countries on Tuesday left its forecast for growth in global oil demand unchanged for 2023 at 2.3 milion barrels a day, or mb/d. In its monthly report, OPEC made small downward adjustments to forecast demand from countries in the Organization for Economic Cooperation and Development, a group made up of rich countries, which were offset by minor upward adjustments due to “better-than-expected performance” in China’s economy. OPEC puts total world oil demand in 2023 at 101.9 mb/d, but said the forecast is “subject to many uncertainties, including global economic developments and ongoing political tensions.” The organization left its outlook for non-OPEC production growth in 2023 unchanged from its May report, forecasting a gain of 1.4 mb/d to average 67.2 mb/d. U.S. liquids supply is forecast to grow by 1.1 mb/d. In the U.S., the “overall oil rig count has dropped for several consecutive weeks, however, it is expected to be essentially above maintenance requirements,” OPEC said. “Gradual and steady growth is expected for US shale oil production throughout the year.” The report said OPEC-13 crude oil production in May decreased by 464,000 barrels a day to average 28.06 mb/d, based on data from available secondary sources.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.