Refined Products Review and Outlook
The price of crude and refined petroleum products on the global market has risen significantly throughout the third quarter of 2023, largely due to dwindling crude supply by the OPEC+, the resumption of economic activities in China, an increase in air travel, and surging demand for petrochemical feedstock. According to the International Energy Agency (IEA), global demand remains on track to grow by 2.2 million b/d in 2023 to 101.8 million b/d. Due to the increased demand, observed global oil inventories plunged significantly by about 2.5 million b/d in August.
Output by the OPEC+ nations has declined in 2023 by about 2 million b/d due to output cuts by Saudi Arabia and Russia. However, supply from the non-OPEC+ nations rose by about 1.9 million b/d to about 50.5 million b/d in August 2023. Supply of crude in 2023 is projected to increase by 1.5 million b/d driven by some non-OPEC+ nations such as the US, Iran, and Brazil.
CBOD MARKET OUTLOOK 1st to 15th October_akd edit _ BFT 2.10.23