Global production of liquid fuels is expected to reach an average of 102.8 million barrels per day (bpd) in 2024, up from 100.0 million bpd in 2022, driven by large growth in non-OPEC production, US Energy Information Administration (EIA) said in a new report.

It added that uncertainty over Russia’s oil supply will continue to persist, particularly in early 2023.

Liquid fuel consumption will exceed 100 million barrels per day, on average, in 2023 for the first time since 2019.

“We expect that global consumption of liquid fuels will increase from an average of 99.4 million bpd in 2022 to 102.2 million bpd in 2024,” the report said.

“Ongoing concerns about global economic conditions, as well as the easing Covid-19 restrictions in China, increase the uncertainty of the forecast outcomes.”

Even with record petroleum consumption, EIA forecast crude oil prices to decrease through 2023 and 2024.

It said global oil inventories will likely increase over the next two years as more global oil is produced than consumed.

Brent crude oil
price will average $83 per barrel in 2023, down 18 percent from 2022.

Price will continue to fall to $78 per barrel in 2024 as global oil inventories build, putting downward pressure on crude oil prices, the report noted.
Source: Reuters (Writing by P Deol; Editing by Anoop Menon)