“Mind-boggling: 2023 Projections Show Alarming 1.84 Million Barrels Per Day Increase in Global Oil Usage!”
A recent report has been released by the King Abdullah Petroleum Studies and Research Center outlining predictions that the global consumption of oil is set to rise by 1.84 million barrels per day to 101.9 mbpd in 2023. This news comes after the minor upward revision of 50,000 bpd from its previous forecast. Despite the downward revisions for growth projections in the US and Europe, it was noted that China’s growth estimates were raised in expectation of a decline in turbulence by the end of the year. As a result, the report predicts an additional 50,000 bpd growth in demand. The advisory think tank has also projected a slightly higher growth rate of 1.91 mbpd in 2024. Saudi Arabia is set to see increases in oil consumption of 80,000 bpd and 45,000 bpd in 2023 and 2024, respectively. The report suggests that transportation fuels will drive the demand for fuel growth, followed by heavier fuels if construction on Saudi Arabia’s mega projects begin. However, the report has also pointed out that uncertainties surrounding the global economy will mainly impact OECD countries in 2023, with fewer implications for non-OECD nations. In addition, global oil supply is projected to grow by approximately 1.97 mbpd in 2023, which is lower than previous projections. Meanwhile, the global oil supply increase is estimated to reach 2.45 mbpd in 2024, higher than the previous projection. These predictions come after the Organization of the Petroleum Exporting Countries and its allies agreed to cut output by 2 mbpd from November 2022 until the end of 2023, and an additional oil output cut of around 1.2 mbpd was announced by Saudi Arabia and other OPEC+ members in early April.