Market: OPEC maintains its 2024 forecast and anticipates strong demand this summer

MOSCOW/LONDON (Reuters) – The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday maintained its forecast for relatively strong growth in global oil demand in 2024, anticipating high fuel use during the summer months.

Global oil demand is expected to increase by 2.25 million barrels per day (bpd) in 2024 and 1.85 million bpd in 2025, OPEC said in a monthly report published on its website. Both forecasts remain unchanged from last month.

“The expected strong mobility and air travel in the Northern Hemisphere during the summer season (…) should support demand for transportation fuels and drive growth in the United States,” it said in the report.

Forecasters are more divided than usual on oil demand growth in 2024, partly because of disagreements over the pace of the green transition. Earlier Wednesday, oil major BP said global oil demand would peak next year.

OPEC+, which includes OPEC and its allies such as Russia, has implemented a series of production cuts since late 2022 to support the market.

On June 2, the group decided to extend its agreement to cut crude production by 2.2 million bpd until the end of September and to phase it out starting in October.

(Reporting by Vladimir Soldatkin and Alex Lawler; French version by Kate Entringer; editing by Augustin Turpin)

Copyright © 2024 Thomson Reuters

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