LONDON :OPEC has raised its 2023 global oil demand growth forecast in its first upward revision for months, due to China's relaxation of COVID-19 restrictions, and trimmed supply forecasts for Russia and other non-OPEC producers, pointing to a tighter market.
"Concern hovers around the depth and pace of the country's economic recovery and the consequent impact on oil demand." Other upside factors are the likelihood that the U.S. Federal Reserve will manage a soft landing for the U.S. economy and further commodity price weakness, OPEC said, although various potentially negative factors persist."Downside risks are apparent and may include further geopolitical tensions in eastern Europe, China's ongoing domestic challenges amid the pandemic, and potential spillovers from China's still fragile real estate sector," OPEC said.
OPEC also lowered its forecast of 2023 growth in supply from producers outside the group to 1.4 million bpd, from 1.5 million bpd last month, citing lower expectations from Russia and the United States.