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The Organization of the Petroleum Exporting Countries (OPEC) has maintained its forecast for a relatively solid increase in oil demand in 2024. It identified that resilient economic growth and advances in the air travel segment will support consumption in the summer months.
OPEC informed that it expects global oil demand to climb by 2.25 million barrels per day (bpd) in 2024. In 2025 by 1.85 million bpd. Both forecasts are unchanged from last month.
„The expected robust mobility and air travel in the northern hemisphere during the summer months is expected to increase demand for transportation fuels in the U.S.,” OPEC believes.
OPEC maintains oil demand growth forecast for 2024
Last month, OPEC+ allies agreed to extend the decision to cut oil production to 2025. It also set a timetable for waiving some of those curbs. This is a decision that could affect prices in the short term. The agreement reached in Riyadh goes beyond some market expectations by extending the so-called „voluntary” cuts by key member states, including Saudi Arabia and Russia, to 2025.
OPEC expects the world economy to grow by 2.9% this year, up from a previously estimated 2.8%. It could revise its forecast upwards amid developments in the OECD.
„Economic growth in developed countries remained resilient in the first half of 2024. This trend supports an overall positive near-term trajectory,” the organization assessed.
On the ICE Futures exchange, Brent North Sea Brent crude oil prices were trading below $85 a barrel after the report was published.
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