OPEC maintains its estimate of strong oil demand growth

OPEC is the Organization of Petroleum Exporting Countries (OPEC). On Tuesday, it maintained its forecast for a significant increase in oil demand in 2024. It also estimated that there are chances that the world economy will perform better than expected this year.

OPEC expects global oil demand to rise by 2.25 million barrels per day (bpd) in 2024. In 2025, it expects an increase of 1.85 million barrels per day. Both forecasts are unchanged from last month.

It is the last report before the June 1st meeting. OPEC+ (Organization of Petroleum Exporting Countries and allies) will participate in this meeting. Then it will be decided whether the voluntary reduction of crude oil production will be extended in the second half of 2024.

OPEC maintains its forecast of strong oil demand growth in 2024 and expects the world economy to grow significantly

„Despite significant downside risks, developments observed since the beginning of the year could create additional growth potential for the global economy in 2024 and beyond,” the OPEC report said.

Also, the institution expects that this year the demand for OPEC+ crude oil will stand at 43.2 million bpd, while the global oil demand would be 104.5 million bpd. In April, the group produced 41.02 million bpd of crude oil, below estimates.

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