OPEC Forecasts Strong Fuel Demand, Maintains Growth Outlook Amid Global Economic Potential.
On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) projected robust fuel consumption during the upcoming summer months and reaffirmed its forecast for relatively strong growth in global oil demand for 2024. The monthly report emphasized the potential for the world economy to outperform expectations this year.
According to OPEC’s report, world oil demand is expected to increase by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025, with both forecasts remaining unchanged from the previous month. This steady growth trajectory indicates a sustained appetite for oil despite various economic factors.
The possibility of enhanced economic growth presents an opportunity for further support to oil prices, which have already surpassed $90 a barrel this year due to tighter supply conditions and geopolitical tensions in the Middle East. OPEC and its allies, collectively known as OPEC+, recently agreed to maintain existing oil output cuts until the end of June.
The report from OPEC highlighted, “Despite some downside risks, the continuation of the momentum seen in the beginning of the year could result in further upside potential for global economic growth in 2024.” This statement underscores cautious optimism regarding economic prospects and their potential impact on oil demand.
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Looking ahead, OPEC+ is scheduled to convene in June to decide whether to extend ongoing output cuts or adjust supply levels in response to market conditions. The organization stressed the importance of monitoring market dynamics closely, especially during the upcoming summer months, to ensure a balanced and sustainable market environment.
In terms of production, the report noted that OPEC oil output remained stable in March, with a slight increase of 3,000 bpd to reach 26.60 million bpd. This stability occurred despite the implementation of new voluntary output cuts by OPEC+ members since January, indicating the group’s commitment to managing supply in line with demand expectations.
