The Organization of the Petroleum Exporting Countries (%OPEC) has maintained its forecast for global %Oil demand in 2024 and 2025 despite ongoing conflict in the Middle East and slumping demand in China.
In its latest report, OPEC said that world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. Both forecasts are unchanged from its previous outlook.
OPEC’s 2024 demand forecast is higher than that of the International Energy Agency (IEA), although the OPEC cartel is cutting its output of crude oil to support the global market.
OPEC’s expectation of oil demand growth is much more than the expansion of 1.24 million bpd forecast by the IEA. However, the IEA is scheduled to update its forecast on Feb. 15.
Despite maintaining its demand forecast, OPEC said that better-than-expected economic growth this year could surprise to the upside and push oil prices higher.
OPEC raised its economic growth forecast for the global economy in 2024 and 2025 by a slight 0.1 percentage points.
“Further upside potential could materialize in all major OECD and non-OECD economies,” OPEC said in its new report.
OPEC and the wider OPEC+ alliance have implemented a series of production cuts since late 2022 to support the market as prices for crude oil fell from a peak of $122 U.S. a barrel to the current level of $82 U.S. per barrel.
The OPEC report adds that OPEC oil production fell by 350,000 bpd in January as a new round of voluntary production cuts were implemented.
Brent crude oil, the international standard, is currently trading at $82.60 U.S. per barrel. West Texas Intermediate (WTI) crude oil is trading at $77.50 U.S. a barrel.