OPEC believes that oil demand will increase in 2024
OPEC believes that oil demand will increase in 2024, therefore, it increased its forecasts for this period.
The Organization of the Petroleum Exporting Countries, OPEC, on Tuesday maintained its forecast for relatively strong growth in global oil demand in 2024 and 2025.
OPEC believes it will increase oil demand in 2024, and as a result, it further raised its economic growth forecast for this year, saying there is more room for improvement.
The Organization of Petroleum Exporting Countries, in a monthly report, said global oil demand will increase by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. Both forecasts were unchanged from last month.
OPEC’s demand growth forecast for 2024 is well above that of many other forecasters, including the International Energy Agency. L
OPEC believes oil demand will increase over the next two decades, while the IEA forecasts it will peak in 2030 as the world shifts to cleaner energy.
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OPEC believes that oil demand will increase
In the report, OPEC notes that it expects the “solid momentum” of economic growth in late 2023 to extend into the first half of 2024 and raises its economic growth forecast for 2024 by 0.1 percentage points, following last month’s hike.
“While some downside risks remain, the continuation of the expected momentum since the beginning of the year could translate into additional upside potential for global economic growth in 2024,” OPEC said in the report.
OPEC believes oil demand will increase and also notes that OPEC oil production rose by 203,000 bpd in February to 26.57 million bpd, led by Nigeria and Libya, despite the new round of voluntary production cuts by the OPEC+ alliance that began in January.
Non-OPEC countries
On the other hand, non-OPEC countries are producing in greater quantities.
Last year, the North American country also set a monthly global production record in December by reaching 13.3 million bpd.
The chances of any other country surpassing this monthly record in the short term are very low, according to the EIA, based on capacity.
The only country capable of reaching the U.S. capacity of 13 million bpd is state-owned Saudi Aramco, but it announced days ago that it would halt plans to expand production capacity, which would have raised it to 13 million bpd by 2027.
The production increases on the U.S. side are due to new drilling technologies, with the Permian Basin primarily responsible for the increases.
Last year, the United States, Saudi Arabia and Russia were responsible for 40% of global crude oil production, with 32.8 million bpd. They were followed by Canada, Iraq and China.
For its part, Russian production, according to the EIA, fell by 200,000 bpd last year.
These values are explained by sanctions and voluntary OPEC+ cuts by Russia. In the case of Saudi production, it fell by around 900,000 bpd due to OPEC+ quotas and voluntary cuts.
