On the demand side, seasonality tends to play an important role as it keeps oil demand growth stagnating or in decline relative to its previous quarter. However, this quarter will also witness an added layer of downward pressure as several European Union (EU) countries, among others, are expected to see their second or third consecutive gross domestic product (GDP) quarterly declines. Indeed, Brazil, Canada, Malaysia, Mexico, and the United Kingdom are all expected to have their second to third consecutive declines in GDP this quarter. Furthermore, although 2023 may witness a deceleration/decline in inflation, there is still the expectation of continued persistent inflation in several commodities, particularly energy. However, despite all these variables, Asia is expected to see healthy demand for energy, counteracting the other negative factors.
KAPSARC Oil Market Outlook (KOMO)
- Initiative Future of Global Oil Markets
- Type Report
- Date 8 February 2023
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