Informist, Thursday, May 11, 2023

--OPEC: OECD oil stocks down 31.7 mln bbl at 2.81 bln bbl in Mar

--OECD Mar crude stocks 105 mln bbl lower than 2015-2019 avg

--OPEC keeps 2023 oil demand growth view unchanged at 2.3 mln bpd

--OPEC keeps non-OPEC oil supply growth unch at 1.4 mln bpd in 2023

--OPEC's Apr oil production at 28.60 mln bpd, down 191,000 bpd on mo

--OPEC keeps 2023 demand view for its oil unchanged at 29.3 mln bpd

--Saudi Arabia Apr oil output 10.5 mln bpd, up 95,000 bpd on mo

--Iraq Apr oil output at 4.1 mln bpd, down 203,000 bpd on mo
 

MUMBAI – The Organization of the Petroleum Exporting Countries said that growth in global oil demand in 2023 is likely to be mostly driven by non-Organization for Economic Cooperation and Development nations. 

The cartel sees oil demand from non-OECD countries growing by nearly 2.3 mln barrels per day this year, while demand growth from OECD nations has been forecast at only 100,000 bpd. 

OPEC kept its forecast for oil demand growth in 2023 unchanged at 2.3 mln bpd from last month's projections. "Minor upward adjustments were made due to the better-than-expected performance in China's economy, while other regions are expected to see slight declines, due to economic challenges that are likely to weigh on oil demand," the cartel said in its monthly Oil Market Report released today.

"Total world oil demand is anticipated to reach 101.9 mb/d (mln bpd) in 2023. However, this forecast is subject to many uncertainties, including global economic developments and ongoing geopolitical tensions," the cartel said in the report. 

The cartel has kept projection for demand for its own oil unchanged at 29.3 mln bpd, which is 800,000 bpd higher than the 2022 level. 

OPEC has also kept its estimate for non-OPEC oil supply growth unchanged at 1.4 mln bpd for 2023. "The main drivers of liquids supply growth are expected to be the US, Brazil, Norway, Canada, Kazakhstan and Guyana, while declines are expected primarily in Russia," the cartel said. 

The cartel's crude oil production fell by 191,000 bpd in April to 28.60 mln bpd, largely driven by sharp declines in Iraq and Libya's output. 

Iraq's oil production in April fell by 203,000 bpd to 4.14 mln bpd, while output from Libya was at 1.14 mln bpd, down 170,000 bpd. 

Meanwhile, Saudi Arabia's production rose by 95,000 bpd to 10.50 mln bpd last month, according to secondary sources cited by OPEC.

The cartel in April had agreed to cut production of crude oil by nearly 1.2 mln bpd from May till the end of 2023 as oil prices had witnessed a slump in March due to fears about lower demand on the back of a banking crisis in the US. The move briefly pushed Brent crude oil prices to nearly $90 per bbl. However, the upside in prices were short-lived as rising interest rates and concerns over a possible recession loomed large on the market. 

After the release of the report, the price of West Texas Intermediate crude oil fell more than 1% to $71.83 per bbl, while Brent crude prices on Intercontinental Exchange was at $75.67 a bbl, down 1% from the previous close. 

OPEC said that crude oil stocks with the OECD countries fell by 31.7 mln bbl in March to 2.81 bln bbl. Stocks in March were 105 mln bbl lower than the 2015-19 average, according to the monthly report.  End

US$1 = 82.09 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Sayantan Sarkar

Edited by Tanima Banerjee

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