OPEC Forecasts Strong Summer Fuel Demand In 2024

(MENAFN- KNN India) New Delhi, Apr 12 (KNN) The Organisation of the Petroleum Exporting Countries (OPEC) predicted a surge in fuel consumption during the upcoming summer travel season and maintained its outlook for relatively strong global oil demand growth in 2024, according to its monthly report released on Thursday.

OPEC expects global oil demand to rise by 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025, unchanged from its previous forecasts.

The cartel cited the potential for continued economic momentum this year, which could provide further upside for global growth and oil demand.

Looking ahead to the peak summer driving season, OPEC anticipates a significant year-over-year increase in fuel demand during the second quarter, with jet fuel/kerosene up by 600,000 bpd, gasoline by 400,000 bpd, and diesel by 200,000 bpd as people take to the roads and skies for travel.

"The robust oil demand outlook for the summer months warrants careful market monitoring, amid ongoing uncertainties, to ensure a sound and sustainable market balance," the report stated.

OPEC's outlook contrasts with some other forecasters, who have lower projections for oil demand growth in 2024.

The divergence partially stems from differing views on the pace of the global energy transition toward cleaner fuels.

Despite the varying projections, OPEC and its allies (OPEC+) agreed last week to maintain their current output cuts until the end of June, with the option to revisit the decision at their next meeting in June.

The cartel expects the robust U.S. driving season to provide the traditional boost to transportation fuel demand, supporting the overall oil market strength anticipated for 2024.

(KNN Bureau)


KNN India

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