IEA Forecasts Record Global Oil Demand In 2023

A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, U.S., March 11, 2022. REUTERS/Bing Guan

OilPrice.com: IEA Sees Global Oil Demand Hitting A Record High In 2023 

* The International Energy Agency believes global oil demand will hit a record high of 101.7 million barrels per day this year. 

* The IEA raised its demand estimate by 200,000 bpd, with the agency saying China will drive nearly half of global demand growth. 

* Oil prices continued to rally early on Wednesday morning on IEA estimates that oil markets are set to tighten in 2023. 

China’s reopening is set to drive global oil demand to a record high of 101.7 million barrels per day (bpd) this year, up by 1.9 million bpd from 2022, the International Energy Agency (IEA) said on Wednesday, raising its demand growth estimate for 2023 by 200,000 bpd from 1.7 million bpd growth expected in December. 

Almost half of the oil demand growth this year will come from China after Beijing lifted its Covid restrictions, the IEA said in its closely-watched Oil Market Report (OMR) for January.  At the same time, world oil supply growth in 2023 is set to slow to 1 million bpd, following last year’s OPEC+ led growth of 4.7 million bpd.

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Update #1: Energy watchdog expects record high oil demand due to China’s COVID reopening (The Hill)

Update #2: Global oil demand could hit record high as China reopens (CNN)  

WNU Editor: Faced with projected record demand and higher prices it looks like Russian oil sanctions are being ignored .... Russia Remains Top Seaborne Oil Supplier To Europe Despite Sanctions (OilPrice.com).