OPEC Projects Sturdy Fuel Consumption Despite Prospects for Global Economic Growth

Last Monday, OPEC and its allies—known as OPEC+—agreed to extend the oil supply cutbacks through the end of June.

The Organization of the Petroleum Exporting Countries (OPEC) has maintained its forecast for robust global oil demand in 2024, predicting a rise of 2.25 million barrels per day (bpd) this year and a further increase of 1.85 million bpd in 2025, in a monthly report that was made public on Thursday.

This forecast is the same as it was in the report from the prior month.

OPEC voiced optimism about the prospect of stronger-than-expected global economic growth in 2024, even though it acknowledged potential downside risks. This might give oil prices further momentum.

This occurs at a time when the Middle East’s continuing wars and limited supply have caused oil prices to soar beyond $90 per barrel in 2024.

In an effort to stabilize oil prices in the face of supply limits, OPEC and its allies, collectively known as OPEC+, recently decided to prolong oil output curbs until the end of June.

To determine whether more output adjustments are required, the panel will meet in June.

OPEC’s oil production reached 26.60 million barrels per day in March, the study states, even though OPEC+ members have been voluntarily reducing their output since January.

In light of the lingering uncertainty, OPEC indicated that “the robust oil demand outlook for the summer months warrants careful market monitoring to ensure a sound and sustainable market balance.”