Wednesday 8 March 2023

OPEC Concerned About Demand Slowdown in US, Europe, Chief Says - Bloomberg

OPEC Concerned About Demand Slowdown in US, Europe, Chief Says - Bloomberg


OPEC’s top official said slowing oil demand in Europe and the US are posing a concern for the global market, even as Asia experiences “phenomenal” growth.

“We see a divided market — almost like two markets,” OPEC Secretary-General Haitham Al-Ghais said at the CERAWeek by S&P Global conference Tuesday. Ensuring “security of demand” in regions where inflation is crimping consumption is as critical as ensuring supplies, he said.

For now, though, rebounding demand in Asia will help keep the market broadly balanced in the first half of the year, with global consumption seen rising by 2.3 million barrels a day to average 101.87 million barrels a day in 2023, according to the latest report from OPEC’s Vienna-based secretariat. After that, the market is expected to tighten as global inventories decline and the 23-nation OPEC+ coalition, led by Saudi Arabia, aims to keep production levels unchanged for the rest of the year.

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