SUBSCRIBE
PROFILE

OPEC relies on China to support oil demand

OPEC forecasts a persistent increase in global oil demand in the second half of 2023 and into 2024, supported in particular by a continued rebound in the Chinese economy. The cartel estimates that demand will increase by 2.2 million barrels per day in 2024, with strong growth expected in non-OECD countries, particularly China, the Middle East and other Asian countries.

Share:

OPEP

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Organization of the Petroleum Exporting Countries (OPEC) is counting on a persistent rebound in the Chinese economy to support oil demand growth in the second half of 2023 and into 2024, according to the cartel’s latest monthly report published on Thursday.

Global oil demand is set to rise in 2024, according to OPEC and the IEA.

“For 2024, global oil demand is expected to increase by 2.2 million barrels per day (mb/d) to around 104.25 mb/d”, according to an initial assessment by OPEC, which revises its forecasts every month.

Non-OECD countries are “expected to drive growth”, to the tune of almost 2.0 mb/d, according to the cartel, which points primarily to China, the Middle East and other Asian countries for the bulk of this growth, also supported by India, Latin America and Africa. For 2023, OPEC is maintaining its growth forecast, revised very slightly upwards to 2.4 mb/d compared with 2022, for global demand of 102 mb/d, compared with 101.9 mb/d estimated last month.

Here again, OPEC points to “the strongest demand in China in the second quarter of 2023”. “Key countries” in oil consumption, including China and India, as well as other developing economies in Asia, will continue to experience strong growth “and will be responsible for almost half of global economic growth next year”, OPEC estimates, subject to a further decline in inflation.

For its part, the International Energy Agency (IEA) estimates that world oil demand should reach 102.1 mb/d in 2023, a record despite a downward revision of the forecast due to the global economic slowdown. On the supply side, OPEC forecasts an increase of 1.4 mb/d in 2024.

OPEC+ countries (Organization of the Petroleum Exporting Countries and their allies) recently announced production cuts to support prices. In June, production by OPEC members held steady, rising very slightly by 91,000 b/d to 28.19 mb/d, according to indirect sources cited in the report.

  • Popular on energynews.pro
BayWa r.e. receives DNV certification for its concrete floating wind concept
Blackstone injects $1.2bn into West Virginia’s first natural gas power plant
ORE Catapult tests Danish technology to extend offshore wind blade lifespan
Kuwait launches tender for 500 MW solar project
UK to install three Rolls-Royce small modular reactors at Wylfa nuclear site
TotalEnergies strengthens position in Nigeria with 90% stake in OPL257
TotalEnergies increases its stake to 90% in Nigeria’s offshore block OPL257 following an asset exchange deal with Conoil Producing Limited.
TotalEnergies and Chevron compete for 40% stake in Mopane oil field in Namibia
TotalEnergies and Chevron are seeking to acquire a 40% stake in the Mopane oil field in Namibia, owned by Galp, as part of a strategy to secure new resources in a high-potential offshore basin.
Rosneft sells 11% of KPC to ease sanctions pressure
The reduction of Rosneft’s stake in Kurdistan Pipeline Company shifts control of the main Kurdish oil pipeline and recalibrates the balance between US sanctions, export financing and regional crude governance.
Lukoil puts pressure on Sofia to finalise refinery divestment
Russian group Lukoil seeks to sell its assets in Bulgaria after the state placed its refinery under special administration, amid heightened US sanctions against the Russian oil industry.
Washington launches new sale of 80 million offshore oil acres
US authorities will hold a large offshore oil block sale in the Gulf of America in March, covering nearly 80 million acres under favourable fiscal terms.
Sinopec to invest $437 million in hydrotreatment unit in Algeria
Sonatrach awarded Chinese company Sinopec a contract to build a new hydrotreatment unit in Arzew, aimed at significantly increasing the country's gasoline production.
Chevron in advanced talks to acquire Lukoil’s international assets
The American major could take over part of Lukoil’s non-Russian portfolio, under strict oversight from the U.S. administration, following the collapse of a deal with Swiss trader Gunvor.
Lukoil shuts down 430 petrol stations in Finland under US sanctions pressure
Finnish fuel distributor Teboil, owned by Russian group Lukoil, will gradually cease operations as fuel stocks run out, following economic sanctions imposed by the United States.
Exxon to close its ethylene plant in Scotland amid market pressures
ExxonMobil will shut down its Fife chemical site in February 2026, citing high costs, weak demand and a UK regulatory environment unfavourable to industrial investment.
Orlen acquires 7.6% of Ekofisk project as DNO reallocates assets
Polish state-owned group Orlen strengthens its North Sea presence by acquiring DNO’s stake in Ekofisk, while the Norwegian company shifts focus to fast-return projects.
Syria signs strategic oil deal with ConocoPhillips and Nova Terra Energy
The Syrian Petroleum Company has signed a memorandum of understanding with ConocoPhillips and Nova Terra Energy to develop gas fields and boost exploration amid ongoing energy shortages.
Fincraft offers revised C$1.75 per share bid to acquire Tethys Petroleum
Fincraft Group LLP, a major shareholder of Tethys Petroleum, submitted a non-binding proposal to acquire all remaining shares, offering a 106% premium over the September trading price.
China increases crude oil stockpiles in October as prices stabilise
As global oil prices slowed, China raised its crude stockpiles in October, taking advantage of a growing gap between imports, domestic production and refinery processing.
Kuwait Petroleum Corporation secures record KWD1.5bn loan to support expansion strategy
Kuwait Petroleum Corporation has signed a syndicated financing agreement worth KWD1.5bn ($4.89bn), marking the largest ever local-currency deal arranged by Kuwaiti banks.
Benin receives offshore unit to relaunch the Sèmè oil field
The Beninese government has confirmed the availability of a mobile offshore production unit, marking an operational milestone toward resuming activity at the Sèmè oil field, dormant for more than two decades.
Baghdad seeks to preserve oil production despite sanctions targeting Lukoil
The Iraqi Prime Minister met with the founder of Lukoil to secure continued operations at the giant West Qurna-2 oil field, in response to recent US-imposed sanctions.
Pertamina increases imports to meet gasoline demand
The sustained rise in consumption of high-octane gasoline pushes Pertamina to supplement domestic supply with new imported cargoes to stabilise stock levels.
CRR acquires 53 km of oilfield road infrastructure from Islander in Alberta
Canadian group CRR acquires a strategic 53-kilometre road network north of Slave Lake from Islander Oil & Gas to support oil development in the Clearwater region.
Kazakhstan denies any plan to acquire Lukoil’s local assets
Kazakhstan’s energy minister dismissed any ongoing talks between the government and Lukoil regarding the potential purchase of its domestic assets, despite earlier comments from a KazMunayGas executive.
OPEC and GECF warn of structural deficit in global energy market
OPEC and the Gas Exporting Countries Forum warn that chronic underinvestment could lead to lasting supply tensions in oil and gas, as demand continues to grow.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.