Even as global crude oil production climbed to a record 101.8 million barrels per day, the world's thirst for oil grew faster, setting the stage for a year of tight markets and geopolitical maneuvering.
Key Takeaways
- Global crude oil production reached 101.8 million barrels per day (b/d) in 2023, up 3.2% from 2022
- Saudi Arabia produced 9.6 million b/d of crude oil in December 2023, accounting for 9.4% of global output
- United States crude oil production hit a record 13.3 million b/d in October 2023, driven by Permian Basin growth
- Global oil demand grew by 2.3 million b/d in 2023 to 102.8 million b/d, led by China
- US petroleum consumption averaged 20.3 million b/d in 2023, up 2% from 2022
- China’s oil demand peaked at 15.2 million b/d in 2023, driven by transportation fuels
- Brent crude oil futures averaged $82.50 per barrel in 2023, ranging from $70 to $95
- WTI crude oil spot price averaged $77.58/bbl in 2023, down 20% from 2022 peak
- Dubai crude oil price averaged $81.20/bbl in 2023, benchmark for Asia
- Proven oil reserves worldwide stood at 1,732.4 billion barrels at end-2022
- Venezuela holds 303.8 billion barrels of proven oil reserves, largest globally
- Saudi Arabia’s proven reserves are 267.0 billion barrels as of 2022
- Seaborne crude trade volumes reached 42.5 million b/d in Q4 2023
- Saudi Arabia exported 7.1 million b/d of crude in 2023, down 5% from 2022
- US crude exports hit record 4.1 million b/d average in 2023
Global oil production grew in 2023 as record US output balanced OPEC+ cuts and shifting trade flows.
Consumption
- Global oil demand grew by 2.3 million b/d in 2023 to 102.8 million b/d, led by China
- US petroleum consumption averaged 20.3 million b/d in 2023, up 2% from 2022
- China’s oil demand peaked at 15.2 million b/d in 2023, driven by transportation fuels
- India’s oil consumption rose 4.5% to 5.7 million b/d in 2023 amid economic growth
- Europe’s oil demand fell 1.8% to 13.9 million b/d in 2023 due to efficiency gains
- Japan’s petroleum consumption declined to 3.2 million b/d in 2023 from EV adoption
- Saudi Arabia consumed 3.9 million b/d of oil products in 2023, mostly for power generation
- Russia’s domestic oil use was 3.7 million b/d in 2023, stable despite exports
- Brazil’s oil demand grew to 3.3 million b/d in 2023, fueled by aviation sector
- South Korea’s consumption averaged 2.7 million b/d in 2023, down slightly
- Canada’s petroleum demand was 2.7 million b/d in 2023, up 1.5%
- Australia’s oil consumption reached 1.2 million b/d in 2023, driven by transport
- Germany’s oil use fell to 2.3 million b/d in 2023 amid renewable shift
- France consumed 1.8 million b/d of petroleum products in 2023, down 3%
- UK oil demand was 1.6 million b/d in 2023, declining due to electrification
- Mexico’s consumption grew to 2.1 million b/d in 2023 from industrial activity
- Indonesia’s oil demand rose to 1.7 million b/d in 2023, up 5%
- Iran consumed 1.9 million b/d domestically in 2023, subsidized heavily
- UAE oil product consumption was 1.0 million b/d in 2023, mostly aviation
- Iraq’s domestic use reached 0.8 million b/d in 2023 from power plants
- Nigeria consumed 0.5 million b/d in 2023, limited by infrastructure
- Venezuela’s oil demand was 0.4 million b/d in 2023, down from economic crisis
- Global aviation fuel demand recovered to 7.0 million b/d in 2023, 85% of pre-COVID
- Road transport diesel demand grew 1.5 million b/d globally in 2023
- Petrochemical feedstock demand increased by 1.2 million b/d in 2023 to 15.5 million b/d
- Global gasoline demand stabilized at 25.5 million b/d in 2023 after pandemic rebound
Consumption Interpretation
Despite a global thirst for oil that grew by a staggering 2.3 million barrels per day—driven by the relentless engines of China, India, and aviation's recovery—the sobering reality is that the developed world is finally sipping its fuel, not guzzling it, as efficiency and electrification begin to temper the party.
Prices
- Brent crude oil futures averaged $82.50 per barrel in 2023, ranging from $70 to $95
- WTI crude oil spot price averaged $77.58/bbl in 2023, down 20% from 2022 peak
- Dubai crude oil price averaged $81.20/bbl in 2023, benchmark for Asia
- OPEC basket price reached $84.36/bbl average in December 2023
- NYMEX WTI front-month futures traded at $73.50/bbl on Dec 31, 2023
- ICE Brent futures closed 2023 at $77.42/bbl after Red Sea disruptions
- Urals crude (Russia) discount to Brent averaged $20/bbl in 2023 due to sanctions
- Dated Brent physical price was $78.90/bbl in Q4 2023 average
- Tapis crude (Asia premium) averaged $88.50/bbl in 2023
- Western Canadian Select (WCS) discount to WTI was $15.50/bbl average in 2023
- OPEC+ announced 2.2 million b/d voluntary cuts in November 2023, supporting prices
- US gasoline retail price averaged $3.52/gallon in 2023, down from 2022 highs
- Diesel retail price in Europe averaged €1.45/liter in 2023, impacted by refinery margins
- Global oil inventories fell by 120 million barrels in Q4 2023 to 4.2 billion barrels
- Refining crack spreads for 3-2-1 reached $12/bbl average in 2023
- LNG freight rates for Middle East to Asia averaged $45,000/day in Q4 2023
- Siberian Light crude discount widened to $30/bbl vs Brent in late 2023
- Global bunker fuel prices averaged $650/MT for VLSFO in 2023
- Henry Hub natural gas price influenced oil parity at $2.50/MMBtu average 2023
- Brent-WTI spread averaged $4.92/bbl in 2023, narrowing from prior years
- Asian naphtha crack spread was $250/MT in Q4 2023
- Global jet fuel crack spread peaked at $45/bbl in summer 2023
- US heating oil futures averaged $2.85/gallon in winter 2023-24
- WTI calendar spreads in contango at $1.50/bbl for 2024 in Dec 2023
- Global oil futures open interest hit 4.2 million contracts in Nov 2023
Prices Interpretation
While OPEC+ is valiantly trying to prop up a picky market with production cuts, the oil world in 2023 was really defined by a dramatic reshuffling of value, where sanctioned Russian crude traded at a firesale discount, regional benchmarks bickered over a few dollars, and the whole fragile system was held together by refining margins that quietly pocketed the real profits.
Production
- Global crude oil production reached 101.8 million barrels per day (b/d) in 2023, up 3.2% from 2022
- Saudi Arabia produced 9.6 million b/d of crude oil in December 2023, accounting for 9.4% of global output
- United States crude oil production hit a record 13.3 million b/d in October 2023, driven by Permian Basin growth
- Russia’s crude oil production averaged 10.5 million b/d in 2023 despite Western sanctions
- OPEC+ crude oil production was 40.9 million b/d in November 2023, including voluntary cuts
- Canada’s oil sands production reached 3.3 million b/d in 2023, representing 55% of national output
- Brazil’s pre-salt oil production grew to 2.8 million b/d in 2023, up 12% year-over-year
- Norway’s crude oil production declined to 1.9 million b/d in 2023 from 2.0 million b/d in 2022 due to field maturity
- Iraq produced 4.5 million b/d of crude oil in 2023, making it OPEC’s second-largest producer
- UAE crude oil production averaged 3.4 million b/d in 2023 under OPEC+ quotas
- Kazakhstan’s oil production rose to 1.8 million b/d in 2023, boosted by Tengiz field expansion
- China’s crude oil production increased to 4.2 million b/d in 2023, a 2% rise from prior year
- Australia’s LNG-associated crude production was 0.4 million b/d in 2023, stable year-over-year
- Angola’s crude oil output fell to 1.1 million b/d in 2023 amid declining reserves
- Guyana’s oil production surged to 0.4 million b/d in 2023 from Stabroek block developments
- Libya’s production recovered to 1.2 million b/d in late 2023 after political stabilization
- Iran’s crude oil production averaged 3.1 million b/d in 2023 despite sanctions
- Kuwait produced 2.6 million b/d of crude oil in 2023 under production cuts
- Nigeria’s oil production averaged 1.4 million b/d in 2023, hampered by theft and sabotage
- Venezuela’s production remained at 0.8 million b/d in 2023 due to underinvestment
- Algeria’s crude output was 1.0 million b/d in 2023, slightly down from 2022
- Oman produced 1.0 million b/d of crude oil in 2023, stable despite global cuts
- Azerbaijan’s production declined to 0.6 million b/d in 2023 from maturing fields
- Mexico’s crude production fell to 1.8 million b/d in 2023 from Pemex inefficiencies
- Colombia produced 0.8 million b/d in 2023, facing reserve depletion challenges
- Ecuador’s output was 0.5 million b/d in 2023, impacted by pipeline attacks
- Argentina boosted shale oil production to 0.6 million b/d in Vaca Muerta in 2023
- Global oil refinery runs averaged 82.5 million b/d in Q4 2023
- Permian Basin rig count reached 310 in December 2023, supporting US production growth
Production Interpretation
The oil market's 2023 story is one of defiant resilience and stark divergence, where record-breaking US shale growth and Saudi discipline collide with sanctioned Russian output, OPEC+ restraint, and the chaotic reality of theft, underinvestment, and geopolitical luck from Nigeria to Norway, proving that the wheels of the global economy keep turning on a surprisingly unstable and crowded stage.
Reserves
- Proven oil reserves worldwide stood at 1,732.4 billion barrels at end-2022
- Venezuela holds 303.8 billion barrels of proven oil reserves, largest globally
- Saudi Arabia’s proven reserves are 267.0 billion barrels as of 2022
- Canada’s oil sands reserves estimated at 166.3 billion barrels recoverable
- Iran’s proven oil reserves total 208.6 billion barrels in 2022
- Iraq reserves at 145.0 billion barrels end-2022
- UAE proven reserves 111.0 billion barrels as of 2022
- Russia’s reserves estimated 107.8 billion barrels in 2022
- Kuwait reserves 101.5 billion barrels end-2022
- US proven crude reserves rose to 44.4 billion barrels in 2022, Permian growth
- Libya reserves 48.4 billion barrels as of 2022
- Nigeria 36.9 billion barrels proven reserves end-2022
- Kazakhstan 30.0 billion barrels reserves in 2022
- China reserves 26.0 billion barrels end-2022
- Brazil reserves increased to 13.0 billion barrels in 2022 from pre-salt finds
- Norway reserves 8.5 billion barrels end-2022, declining
- Angola reserves 8.2 billion barrels as of 2022
- Algeria 12.2 billion barrels proven reserves end-2022
- Mexico reserves fell to 5.8 billion barrels in 2022
- Guyana discovered 11.6 billion barrels recoverable in Stabroek block by 2023
- Global technically recoverable tight oil resources estimated at 2,200 billion barrels
- OPEC reserves-to-production ratio averaged 50.9 years in 2022
- Permian Basin US reserves added 5.7 billion barrels in 2022 discoveries
- North Sea UK reserves down to 2.5 billion barrels end-2022
- Global undiscovered oil resources estimated 565 billion barrels by USGS
- Qatar oil reserves 25.2 billion barrels end-2022
- Oman reserves 5.4 billion barrels as of 2022
- Global strategic petroleum reserves totaled 1.5 billion barrels in OECD countries 2023
- US SPR held 347 million barrels as of Dec 2023, down from 714 million peak
Reserves Interpretation
While Venezuela's reserves might make it the king of proven oil on paper, the global reality is a precarious poker game where a flush of frackable tight oil trumps their ace-in-the-hole, and everyone is nervously checking their strategic chip stacks.
Trade
- Seaborne crude trade volumes reached 42.5 million b/d in Q4 2023
- Saudi Arabia exported 7.1 million b/d of crude in 2023, down 5% from 2022
- US crude exports hit record 4.1 million b/d average in 2023
- Russia’s seaborne crude exports averaged 5.0 million b/d in Q4 2023 despite sanctions
- Iraq exported 3.5 million b/d of crude in 2023, primarily to China
- China imported 11.3 million b/d of crude oil in 2023, world’s largest importer
- India’s crude imports rose to 5.1 million b/d in 2023, up 8%
- EU crude imports from Russia fell 92% in 2023 to 0.6 million b/d
- South Korea imported 2.6 million b/d of crude in 2023
- Japan’s crude imports averaged 2.8 million b/d in 2023, down 5%
- Netherlands as EU hub handled 15.2 million b/d of seaborne crude in Rotterdam 2023
- Singapore refined products exports reached 20.0 million b/d equivalent in 2023
- US product exports averaged 6.0 million b/d in 2023, gasoline to Europe
- Brazil exported 1.6 million b/d of crude in 2023, up 10%
- Canada exported 4.3 million b/d mostly to US in 2023
- Nigeria exported 1.3 million b/d of crude in 2023 despite theft issues
- Angola crude exports averaged 1.1 million b/d to Asia in 2023
- Kazakhstan pipeline exports to China hit 1.8 million b/d in 2023
- UAE exported 2.8 million b/d of crude in 2023 under quotas
- Libya exports recovered to 1.1 million b/d in Q4 2023
- Global VLCC crude tanker rates averaged WS55 for MEG to China in Q4 2023
- Suezmax rates for West Africa to China at WS65 average 2023
- US Gulf Coast crude exports to Europe rose 20% to 0.5 million b/d in 2023
- China’s Russian crude imports surged 24% to 2.1 million b/d in 2023
- India’s discounted Russian oil imports averaged 1.7 million b/d in 2023
Trade Interpretation
Despite all the geopolitical shuffling, tanker rerouting, and sanctions-induced musical chairs, the global oil market in 2023 proved it’s a resilient beast that always finds a buyer for every barrel, especially if the price is right and the destination is Asia.
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