Global oil demand expectations increase as sentiment improves

  • OPEC raises global oil demand forecast by 100,000 barrels a day
  • Weak sentiment around oil demand is exaggerated
  • Stronger-than-expected growth in the U.S. and China contribute to bullish sentiment
  • OPEC’s own output increases to 27.9 million barrels a day
  • Market likely in a million-barrel-a-day deficit during Q3 2023
  • Saudi Arabia and Russia continue to cut production to support prices
  • OPEC+ meeting scheduled for Nov. 26 to discuss future production

The Organization of the Petroleum Exporting Countries (OPEC) has raised its expectations for global oil demand, stating that weak sentiment is exaggerated and the economy is more resilient than originally thought. OPEC now forecasts a rise in oil demand by 2.5 million barrels a day this year, up by 100,000 barrels a day from the previous month. The cartel attributes this more bullish sentiment to stronger-than-expected growth in the U.S. and China. OPEC’s own output has also increased to 27.9 million barrels a day. The market is likely to experience a million-barrel-a-day deficit during the third quarter of 2023. To support prices, Saudi Arabia and Russia continue to cut production, with OPEC+ scheduled to meet on Nov. 26 to discuss future production.

Public Companies: Organization of the Petroleum Exporting Countries (OPEC)
Private Companies:
Key People: Yusuf Khan (Author)

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Factuality Level: 7
Justification: The article provides information from OPEC’s monthly oil-market report and includes statements from OPEC officials. However, it does not provide any counterarguments or perspectives from other sources, which could limit the overall factuality of the article.

Noise Level: 7
Justification: The article provides information on OPEC’s expectations for global oil demand and its own output, as well as factors influencing the market. However, it lacks scientific rigor and intellectual honesty as it does not provide evidence or data to support its claims. It also does not offer actionable insights or solutions for the reader.

Financial Relevance: Yes
Financial Markets Impacted: Oil markets and companies in the oil industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses OPEC’s raised expectations for global oil demand and the positive outlook for the oil market. There is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com