In its initial outlook for 2023, the International Energy Agency (IEA) has predicted that the demand for crude oil will surpass the pre-pandemic level to reach a new record high of 101.6 million barrels per day (mb/d).
The report notes that while a relatively poor economic outlook and elevated prices:
“Are moderating consumption increases, a resurgent China will drive gains next year, with growth accelerating from 1.8 mb/d in 2022 to 2.2 mb/d in 2023. In contrast to 2022 when the OECD led the expansion, non-OECD economies are set to account for nearly 80% of growth next year.”
The IEA notes that suppliers could face challenges in meeting the increased demand, despite the OPEC+ group already being in the process of rolling back the production cuts that it made at the onset of the COVID-19 pandemic. The report points out that outside of the Middle East, OPEC producers may struggle to increase production. The IEA, therefore, expects that over 2023, production increases will largely be driven by non-OPEC producers.
For now, however, the IEA says OECD (Organisation for Economic Co-operation and Development) industry stocks and oil inventories are rising, with increased supply and slowing demand growth expected to help rebalance the market by the end of this year.
Nevertheless, with energy continuing to be a relatively expensive commodity, the efficiency benefits of advanced lubrication strategies can be very appealing. When you work together with our specialist team at TrAchem, we can help you to identify energy-saving options like the Mobil DTE Excel range of hydraulic oils.