Middle East crude oil production is set to drop by around 140,000 b/d in 2023 if Opec+ cuts last as planned until the end of the year. Meanwhile, oil consumption in the region is expected to increase due to still-robust economic growth and the heavy use of liquids in power plants.
Economic growth in the region’s petro-states is highly unlikely to rival last-year’s oil-driven boom, but will still be well above the global average. For instance, Saudi Arabia’s initial estimates are for real-terms GDP growth of 8.5% for 2022 moderating to a still-strong 3.1% this year. To put this in context, the IMF currently forecasts 2.7% global growth for 2023, although it says this will likely be upgraded in next week’s World Economic Outlook (WEO). (CONTINUED - 940 WORDS)