{"id":4228,"date":"2023-03-14T14:58:01","date_gmt":"2023-03-14T14:58:01","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=4228"},"modified":"2023-03-14T14:58:02","modified_gmt":"2023-03-14T14:58:02","slug":"opec-raises-chinese-oil-demand-growth-view-flags-econ-risks","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/4228\/","title":{"rendered":"OPEC raises Chinese oil demand growth view, flags econ risks"},"content":{"rendered":"
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OPEC on Tuesday further raised its forecast for Chinese oil demand growth in 2023 due to the relaxation of the country’s COVID-19 curbs, although it left the global total steady citing potential downside risks for world growth.<\/p>\n\n\n\n

World oil demand in 2023 will rise by 2.32 million barrels per day (bpd), or 2.3%, the Organization of the Petroleum Exporting Countries said in a monthly report. This was unchanged from last month’s forecast.<\/p>\n\n\n\n

While faster Chinese demand could support the oil market, crude prices have fallen this week as the collapse of Silicon Valley Bank has sparked fears about a fresh financial crisis. OPEC flagged potential downside risks for the world economy from rising interest rates.<\/p>\n\n\n\n

“China’s reopening, following the lifting of the strict zero-COVID-19 policy, will add considerable momentum to global economic growth,” OPEC said in the report.<\/p>\n\n\n\n

“The rapid rises in interest rates and global debt levels could cause significant negative spill-over effects, and may negatively impact the global growth dynamic,” OPEC added.<\/p>\n\n\n\n

OPEC expects Chinese oil demand to grow by 710,000 bpd in 2023, up from last month’s forecast of 590,000 bpd and a contraction in 2022.\u00a0Last month’s report\u00a0had also raised the Chinese forecast.<\/p>\n\n\n\n

The global total was steady due to downward revisions elsewhere, including the United States and Europe.<\/p>\n\n\n\n

OPEC was cautious on economic prospects, leaving its 2023 global growth forecast at 2.6%. The report cited the U.S. Federal Reserve successfully managing an inflation slowdown as among potential upside factors.<\/p>\n\n\n\n

Oil weakened after the report was released, extending an earlier decline. Brent crude was down over $1 to below $80 a barrel.<\/p>\n\n\n\n

HIGHER OUTPUT<\/h2>\n\n\n\n

The report also showed OPEC’s oil production rose in February despite output cuts by the wider OPEC+ group. OPEC+ includes the 13 OPEC members, plus Russia and other outside producers.<\/p>\n\n\n\n

For November last year, with prices weakening, OPEC+ agreed to a 2 million bpd reduction in its output target – the largest since the early days of the pandemic in 2020. OPEC’s share of the cut is 1.27 million bpd.<\/p>\n\n\n\n

OPEC said its crude oil output in February rose by 117,000 bpd to 28.92 million bpd, helped by a further recovery in Nigeria which has boosted supply due to improved security in its oil-producing Delta region.<\/p>\n\n\n\n

Despite the rise, OPEC is still pumping much less than called for by the OPEC+ agreement, as Nigeria, Angola and other members struggle to reach their targets.<\/p>\n\n\n\n

The report also trimmed its estimate of the amount of crude OPEC needs to pump in 2023 to balance the market by 200,000 bpd to 29.3 million bpd, suggesting a less tight market outlook than previously thought.<\/p>\n

Updated on