OPEC cuts oil demand growth forecast

Economy

12-08-2024, 16:48

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INA - SOURCES

OPEC cut, on Monday, its forecast for global oil demand growth in 2024, a reduction that highlights the dilemma faced by the wider OPEC+ group in raising production from October.

In a monthly report, the Organization of the Petroleum Exporting Countries said world oil demand will rise by 2.11 million barrels per day in 2024, down from growth of 2.25 million bpd expected last month.

In the report, OPEC also cut next year's demand growth estimate to 1.78 million bpd from 1.85 million bpd previously, also at the top end of what the industry expects.

The report added that the Organization for Economic Cooperation and Development’s (OECD) oil demand will likely grow by around 0.2 million bpd in 2024, while non-OECD oil demand will increase by around 1.9 million bpd.

In 2025, OPEC expects OECD demand to expand by about 0.1 million bpd, with OECD Americas contributing the largest increase.

Non-OECD demand is set to drive next year’s growth, increasing by about 1.7 million bpd mainly due to contributions from China, the Middle East, Other Asia, and India.