BAKU, Azerbaijan, February 14. Transport fuels are projected to be the main driving force of the global demand growth in 2023, Trend reports via monthly oil outlook from OPEC.
According to the forecast, the demand for gasoline and diesel is going to rise by around 1.1 million barrels per day (mb/d) year-on-year, which is far beyond the pre-COVID-19-pandemic levels. This will be backed by a steady growth in mobility amid an ongoing rebound in the services sector.
At the same time, global demand for aviation fuel will bounce back, growing by around 1.1 mb/d year-on-year, as both national and international travel proceeds with recovery. However, the outlook still expects it to remain 9 percent below the pre-pandemic level.
Meanwhile, demand for liquified petroleum gas (LPG) is forecast to slow down, in the OECD countries in particular, but still increase by 0.2 mb/d year-on-year.
OPEC expects the key to the global liquids demand growth in 2023 to be China's reverse from its COVID-19 restrictions and the outcome of it for the world.
"Concern hovers around the depth and pace of the country’s economic recovery and the consequent impact on oil demand. Much will depend on how the government plans to maneuver the delicate balance of curbing COVID-19 infections versus opening up for business. Moreover, a number of global economic concerns − including the inflation levels, monetary tightening measures, sovereign debt levels, as well as geopolitical tensions − will weigh on global oil demand prospects. Amid this considerable challenge, it is important for the countries of the Declaration of Cooperation (DoC) to continue coordinating efforts to support a balanced and stable oil market to help navigate these uncertainties," OPEC noted in its outlook.