Saudi Arabia’s average oil output grew by 20% from the start of 2022 to the end of August. The Kingdom’s production increased by 1.8 million barrels per day from the same time previous year to approximately 10.5 million barrels per day. The OPEC+ agreement’s efforts to maintain market stability and performance efficiency for the benefit of market players and the petroleum sector are what led to this increase.
Saudi Arabia anticipates that its overall GDP will increase by 8% in 2022, steered mainly by the GDP growth of the oil sector and the continued expansion of non-oil activities, which are anticipated to grow by 5.9% in this year.
The global demand for oil is anticipated to increase by 3.1 million barrels per day from 2021 to reach 100.03 million barrels per day in August 2022, according to the OPEC monthly report on oil markets.
To reach 102.72 million barrels per day in 2023, the world’s oil demand is anticipated to increase by almost 2.7 million barrels per day. It is important to note that the growth in 2023, or about 2.1 million barrels per day, will be primarily driven by non-OECD nations.
According to the research, this increase is the result of both these nations’ economies recovering and rising fuel demand in the transportation, industrial, and petrochemicals sectors.
When compared to the same period in the previous year, the average price of Brent crude futures grew by 55 percent, from the beginning of 2022 to the end of August, to reach about $104.04 per barrel.
Although there has been uncertainty in the global markets this year due to geopolitical events, serious economic concerns, and tightening monetary measures to fight global inflation, the oil market has been more stable than other energy markets like natural gas, coal, and electricity.
The OPEC+ agreement supported oil market stability in particular by balancing supply with the slow but steady rise in demand for oil after the COVID outbreak subsided.