OPEC+ forecasts robust global oil demand

OPEC+ reaffirmed its prediction of robust global oil demand growth for 2024, despite lower first-quarter usage, citing anticipated boosts from travel and tourism in the latter half of the year.

The organisation expects a 2.25 million barrels per day (bpd) increase in 2024 and a 1.85 million bpd rise in 2025, mirroring last month’s projections.

Notably, global economic stability persists, with a forecasted 2.3 million bpd demand uptick in the latter half of 2024, mainly fueled by the services sector, particularly supported by travel and tourism.

Adjustments were made for the first quarter, lowering total demand to 103.51 million bpd and increasing second-quarter forecasts by the same margin.

OPEC+, including allies like Russia, extended output cuts until September, signalling a market support strategy post-Bernard Looney’s departure. Divergence in demand growth forecasts for 2024 persists, attributed partly to discrepancies in the pace of transitioning to cleaner fuels.

The International Energy Agency (IEA), representing industrialised nations, anticipates a lower expansion of 1.1 million bpd, with updated figures expected this week.

Attribution: Reuters citing OPEC+ Monthly Oil Market Report.