In its latest monthly report, OPEC has reaffirmed projections for robust global oil demand growth, anticipating an increase of 2.2 million barrels per day for the current year. The organization also maintains a steady outlook for 2025, expecting global oil demand to grow by 1.8 million barrels per day. Additionally, OPEC has revised upwards its global economic growth forecast for 2024 to 2.9 percent.
The report underscores expectations of heightened commuting and air travel in the Northern Hemisphere during the summer driving and vacation season, particularly in the United States, which is anticipated to bolster demand for transportation fuels.
However, contrasting views on the trajectory of oil demand growth are emerging, partly influenced by varying perspectives on the pace of transitioning to cleaner energy sources. BP, for instance, anticipates oil demand to peak next year, a viewpoint divergent from OPEC’s optimistic outlook on sustained demand growth.
To stabilize the market amidst these divergent expectations and the global shift towards cleaner energy, the OPEC+ alliance, which includes Russia and other allies, has extended production cuts of 2.2 million barrels per day until the end of September. Plans are in place to gradually phase out these cuts starting in October, aiming to support market stability amidst fluctuating demand dynamics and the evolving energy landscape.
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