OPEC Sees Oil Market a Bit Tighter on More Demand, Less Supply

OPEC Sees Oil Market a Bit Tighter on More Demand, Less Supply

OPEC expects a slightly tighter global oil market than previously forecast as the group nudged up its demand estimate and trimmed its supply outlook.

The Organization of Petroleum Exporting Countries raised its projection for the amount of crude it will need to pump this year by 250,000 barrels a day to an average of 29.42 million a day, it said in a monthly report. Based on OPEC’s current output rates, markets are set to be broadly balanced this year.

The OPEC+ alliance has indicated it plans to stick with production quotas fixed late last year for the rest of 2023, even as China’s economy reopens and Russia cuts output in retaliation for Western sanctions. The United Arab Emirates energy minister reiterated on Tuesday that world crude markets are balanced as rising demand in some regions is countered by a slowdown elsewhere.