The Organization of the Petroleum Exporting Countries (OPEC), in its monthly report on Tuesday, stated that global oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. These forecasts remain unchanged from last month.
OPEC maintained its forecast for significant growth in global oil demand in 2024, even though usage was lower than expected in the first quarter. They pointed to the expected boost from travel and tourism in the second half of the year as a key factor supporting consumption.
OPEC’s latest report highlights strong oil market conditions expected for the second half of the year. On Monday, oil prices surged by 3% following Goldman Sachs’ prediction that transportation demand would lead to a deficit in the market during the third quarter.
OPEC stated that steady global economic growth persisted throughout the first half of 2024. The organization projected a 2.3 million barrels per day (bpd) increase in world oil demand for the second half of the year.
OPEC+, consisting of OPEC and allies like Russia, has been enforcing a sequence of production cuts since late 2022 to bolster the market.
On June 2, the group decided to prolong the current cut of 2.2 million barrels per day (bpd) until the end of September, with plans to gradually ease it out starting in October.