2024-02-14 03:01:38
The Organization of the Petroleum Exporting Countries (OPEC) is sticking to its forecast of relatively strong growth in global oil demand in 2024 and 2025. It is raising its expectations for economic growth in both years, Reuters reported. According to the cartel, there is further upside potential.
OPEC said in its monthly report that global oil demand will grow by 2.25 million barrels per day in 2024 and by 1.85 million barrels per day in 2025. Both forecasts remain the same as last month.
A further boost to economic growth could increase oil demand. OPEC’s forecast for 2024 is already higher than that of the International Energy Agency (IEA), although OPEC and its partners (OPEC+) remain with reduced production to support the market.
OPEC said it expects the positive economic growth trend to continue in the first half of 2024 and raised its economic growth forecasts for 2024 and 2025 by 0.1 percentage points.
Global economic growth remains strong, the OPEC report said. There are prerequisites for further increases in all major economies in OPEC and beyond.
Conflict in the Middle East and supply chain disruptions are supporting oil prices, although lingering concerns about high interest rates are taking their toll. Brent crude oil traded today for around 82 dollars per barrel, which is an increase of 0.5 percent, reports BTA.
For this year, OPEC’s expectations for oil demand growth exceeded the IEA’s forecast of 1.24 million barrels per day. The Paris-based organization, which represents industrialized countries, will update its forecast on Thursday.
According to the OPEC report, oil production fell by 350,000 barrels per day in January after the new round of OPEC+ cuts for the first quarter took effect.