OPEC maintains oil demand growth forecast amid mixed market outlook


(MENAFN) OPEC has reaffirmed its forecast for global oil demand growth, projecting an increase of 2.2 million barrels per day for this year. In its monthly report released on Wednesday, the organization also maintained its forecast for global oil demand growth at 1.8 million barrels per day in 2025. Additionally, OPEC raised its global economic growth forecast for 2024 to 2.9 percent. The report highlighted that the anticipated strong commuting and air travel in the Northern Hemisphere during the summer driving and vacation season are expected to boost demand for transportation fuels, particularly in the United States.

However, the divergence in expectations regarding the strength of demand growth in 2024 is becoming more pronounced, partly due to differing views on the pace of the global transition to cleaner fuels. BP, for instance, stated earlier on Wednesday that it expects oil demand to peak next year. In contrast, OPEC remains optimistic about continued demand growth.

To support the market, the OPEC+ alliance, which includes OPEC and allies such as Russia, has been implementing a series of production cuts since late 2022. On June 2, the alliance agreed to extend its latest cuts of 2.2 million barrels per day until the end of September, with plans to gradually phase them out starting in October. These measures aim to stabilize the market amidst fluctuating demand expectations and the ongoing shift towards cleaner energy sources. 

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