Africa-Press – Gambia. The International Energy Agency (IEA) estimates that 2022 will end with a global demand of 99.9 million barrels of oil per day, plus 2.3 million barrels, and that in 2023 the increase will be less, of 1. 7 million barrels, to 101.6 million barrels.
The monthly report on the oil market comes amid a significant drop in prices since November, which totaled around 15 dollars per barrel in six weeks, despite the increase in consumption generated by the winter in the northern hemisphere.
The decline is most notable when compared with the peaks of $130 per barrel seen in early March, just days after Russia’s invasion of Ukraine began.
The price drop came despite OPEC+ reducing production by two million barrels per day in October, a decrease that in December was extended into next year.
Russian oil has seen much larger declines, from as low as $30 a barrel to $43 in early December in northwest Europe, well below the $60 ceiling agreed by the European Union, the G7 and Australia.
The increase in world reserves of oil products, which is expected for the first quarter of 2023, may have contributed to the global drop in prices, after 10 consecutive quarters of decline.
Refinery production increased in November by 2.2 million barrels per day to reach the highest level since January 2020, before the pandemic, which caused a reduction in gasoline and diesel prices.
In November, Russia’s oil export revenues fell by US$700 million to US$15.8 billion, due to lower prices and higher discounts on products of Russian origin, according to the report. This drop in revenues came despite Russian exports of oil and oil products rising by 270,000 barrels a day to a total of 8.1 million, the highest monthly figure since April, mainly due to an increase in diesel shipments.
Price increase
The International Energy Agency (IEA) has warned that it does not exclude an increase in the price of crude oil in 2023 due to the tightening of the global market, despite the current phase of decline caused by the weakening of the world economy.
The IEA underlines how the price fell by around 15 dollars per barrel in October, due to the decline in demand caused by the weakening of the economy and the abundance of supply.
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