Sources from the International Energy Agency expected global oil demand to grow by 2.2 million barrels per day in 2023, to reach 102 million barrels per day, which is considered a record level and will lead to demand exceeding supply by about two million barrels per day in the second half of this year.

The International Energy Agency also expected that the production of OPEC Plus crude oil would decrease by 850,000 barrels between April and December 2023, and that supplies from outside the Organization of Oil Exporting Countries would rise by about 710,000 barrels per day.

The agency stated that China will account for about 60% of the growth in demand for crude oil this year, in conjunction with the recovery of its demand better than expectations, and its demand for oil has grown to a record level of 16 million barrels in March 2023.

As for Russia, although it previously pledged to reduce oil production by about 500 barrels per day, the International Energy Agency expects Russia to raise its production to compensate for lower revenues.

Commenting on the voluntary decisions to cut oil production by members of the OPEC Plus coalition, which totaled about 1.66 million barrels per day, the International Energy Agency believes that the decision to cut oil production by members of the coalition raises the risk of exacerbating market turmoil and raising oil prices amid inflationary pressures, especially since Oil markets will already be tight in the second half of 2023, with the potential for a huge supply deficit.

It should be noted that crude oil prices achieved strong increases, after OPEC, led by the Kingdom of Saudi Arabia, which is considered the largest oil exporter in the world, along with other producers from the OPEC Plus alliance, decided to reduce crude oil production from May until the end of 2023, which increases fears. shortage of oil in the market.