Opec sticks to 2024 oil demand view, sees strong travel season
Published: 02:07 PM,Jul 10,2024 | EDITED : 06:07 PM,Jul 10,2024
A 3D printed oil pump jack is seen in front of displayed stock graph and Opec logo in this illustration picture. — Reuters
MOSCOW/LONDON: The Organisation of the Petroleum Exporting Countries (Opec) stuck to its forecast for relatively strong growth in global oil demand in 2024 and next year, saying on Wednesday that resilient economic growth and strong air travel would support fuel use in the summer months.
Opec, in a monthly report, said world oil demand would rise 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.
'Expected strong mobility and air travel in the Northern Hemisphere during the summer driving/holiday season is anticipated to bolster demand for transportation fuels and drive growth in the United States,' Opec said in the report.
Forecasters have been split more widely than usual on the strength of oil demand growth, partly due to differences over the pace of the world's transition to cleaner fuels. Earlier on Wednesday, BP said oil demand would peak next year.
Opec+, which groups Opec and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. The group agreed on June 2 to extend the latest cut of 2.2 million bpd until the end of September and gradually phase it out from October.
Opec also raised its forecast for world economic growth this year to 2.9% from 2.8%, and said there was potential upside to that number, citing momentum seen this year outside developed countries in the Organization for Economic Cooperation and Development.
Oil prices edged lower on Monday, reversing course after four weeks of gains, as hopes of a ceasefire deal in Gaza eased worries of tightening supply.
'Economic growth momentum in major economies remained resilient in the first half. This trend supports an overall positive growth trajectory in the near term,' Opec said.
Oil was steady after the Opec report was released, with Brent crude trading below $85 a barrel. — Reuters
Opec, in a monthly report, said world oil demand would rise 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.
'Expected strong mobility and air travel in the Northern Hemisphere during the summer driving/holiday season is anticipated to bolster demand for transportation fuels and drive growth in the United States,' Opec said in the report.
Forecasters have been split more widely than usual on the strength of oil demand growth, partly due to differences over the pace of the world's transition to cleaner fuels. Earlier on Wednesday, BP said oil demand would peak next year.
Opec+, which groups Opec and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. The group agreed on June 2 to extend the latest cut of 2.2 million bpd until the end of September and gradually phase it out from October.
Opec also raised its forecast for world economic growth this year to 2.9% from 2.8%, and said there was potential upside to that number, citing momentum seen this year outside developed countries in the Organization for Economic Cooperation and Development.
Oil prices edged lower on Monday, reversing course after four weeks of gains, as hopes of a ceasefire deal in Gaza eased worries of tightening supply.
'Economic growth momentum in major economies remained resilient in the first half. This trend supports an overall positive growth trajectory in the near term,' Opec said.
Oil was steady after the Opec report was released, with Brent crude trading below $85 a barrel. — Reuters