BAKU, Azerbaijan, December 19. Annual oil demand in the Middle East is expected to increase by 20,000 b/d in 2023, reaching almost 8.9 mb/d, Trend reports.
According to the data provided by the International Energy Agency (IEA), in 4Q2023, Middle Eastern regional demand is expected to dip by 100,000 b/d compared to the previous year, marking a year of uneven development.
At the same time, demand for LPG/ethane is projected to decrease by 80,000 b/d, and gasoil demand will see a year-on-year drop of 40,000 b/d. On the other hand, as the agency noted, total crude and fuel oil used in power generation are expected to remain relatively stable year-on-year.
Meanwhile, intense competition from Chinese producers has led to a significant decline in petrochemical production in the region, resulting in an 80,000 b/d year-on-year contraction in regional LPG/ethane use during 4Q2023.
Thus, the IEA expects overall annual demand to increase by 20,000 b/d in 2023 and gain momentum, growing by 100,000 b/d in 2024 to almost 9 mb/d, with a modest rebound anticipated in petrochemical demand.