According to the latest issue of the Monthly Oil Market Report published by OPEC on Tuesday, the organisation has increased its estimate of the growth in global oil demand for 2023 by 100,000 bpd to 2.3 million bpd. The Organization for Economic Cooperation and Development (OECD) countries are expected to expand by 400,000 bpd, while non-OECD nations are expected to rise by 2 million bpd, according to the prediction for demand growth.

Despite downward OECD demand adjustments and upward non-OECD demand adjustments, the organisation did not significantly alter its projection for the growth of global oil demand in 2022. This was largely due to “improvements in economic activity in some countries and a slight recovery in oil demand in China after the lifting of its zero-Covid-19 policy.”

OPEC made no adjustments to the 28.6 million bpd demand for OPEC crude oil in 2022, which is around 500,000 bpd more than in 2021. However, OPEC increased its prediction for this year’s demand for OPEC crude oil by 200,000 from its prior estimate, bringing it to 29.4 million bpd, an increase of 800,000 bpd over last year.

According to the MOMR, the world’s oil demand increased by 2.5 million bpd last year due to growth in both OECD and non-OECD nations, except for China, whose oil usage decreased as its net zero Covid-19 policy took effect.

The primary drivers of oil demand, according to OPEC, are transportation fuels, with gasoline and diesel consumption expected to rise by 1.1 million bpd per year, significantly above pre-pandemic levels. As travel resumes, there is also the expectation that demand for jet fuel would increase by 1.1 million bpd annually.