OPEC expects global oil demand to grow steadily in 2023 with potential economic growth linked to a loosening of China's COVID-19 policy, which this year led to a decline in the country's oil consumption for the first time in years.

World oil demand will increase by 2.25 million barrels per day in 2023, or about 2.3%, according to a monthly report from the Organization of the Petroleum Exporting Countries (OPEC). The forecast has been stable since November after a series of downgrades.

While global economic uncertainty is high and growth risks in key economies remain tilted to the downside, positive factors have also emerged that could counterbalance current and upcoming challenges, OPEC said in the report. The resolution of geopolitical conflict in Eastern Europe and a loosening of China's COVID-19 policy could provide some upside.

China's demand, affected by measures to curb the spread of COVID-19, will average 14.79 million bpd in 2022, 180,000 bpd less than in 2021, according to OPEC.

In the report, OPEC raised its economic growth forecast for 2022 to 2.8% and left 2023 at 2.5%. In addition to China's easing of COVID policies, the report listed other sources of growth, including lower commodity prices.

Growth potential - or at least counterbalancing factors - may come from the U.S. Federal Reserve's successful soft landing in the United States, as well as the continued decline in commodity prices and the resolution of tensions in Eastern Europe, OPEC said.