International Energy Agency said in the April edition of its Oil Market Report that world oil demand will climb by 2 million barrels per day in 2023 to a record 101.9 million b/d. IEA said China will make up more than half of the global increase. The report added, “While oil demand in developed nations has underwhelmed in recent months, slowed by warmer weather and sluggish industrial activity, robust gains in China and other non-OECD countries (Organization for Economic Cooperation and Development) are providing a strong offset.”
IEA added, “Surprise OPEC+ production cuts announced April 2 are likely to exacerbate an expected oil supply deficit in second-half 2023 and push prices higher amid heightened economic uncertainty.”