OPEC Expects Strong Global Oil Demand This Summer

(CTN News) – As summer and holiday travel pick up, OPEC said on Thursday, global oil demand is expected to rise as transportation fuel consumption rises across regions and over the course of the summer. According to the group, the summer months are expected to be characterized by robust oil demand.

The strong demand for oil in the second and third quarters of this year could lead to further tightening of the market, particularly if the OPEC+ group does not begin to ease the current production cuts in July.

In its closely watched Monthly Oil Market Report (MOMR) released today, the Organization of the Petroleum Exporting Countries (OPEC) left unchanged its forecasts for this year and next year’s growth in oil demand.

For 2024, OPEC continues to expect global oil demand to grow by 2.2 million barrels per day (bpd), broadly in line with last month’s estimate. There will still be “robust growth” of 1.8 million barrels per day in 2025 as compared to 2024, according to the cartel.

The Organization of Petroleum Exporting Countries, however, pointed out a robust growth trend that could have further upside potential, including in the United States, which could outperform the current annual growth forecast.

The OPEC report noted that, despite some downside risks, the underlying momentum could lead to a further increase in global economic growth in 2024.

The US economy continues to grow at a steady rate that may outperform the forecast for the current year.”

Even the Eurozone, which has encountered numerous challenges over the past two years, may see an improvement due to real income growth, a continued rebound in tourism towards summer, and a gradual improvement in industrial production.

As well as the major Asian economies, there are potential upsides.

It is anticipated that a more robust growth trajectory in Asia, particularly in India and China, could provide further impetus to world economic growth in both 2024 and 2025.

The demand for transportation fuels, especially jet fuel, is expected to increase in the summer months compared with last year.

According to the Organization of Petroleum Exporting Countries (OPEC), jet/kerosene markets will show solid growth in the coming months as air travel picks up across regions.

SEE ALSO:

Inflation Will Drop Further In 2024, But It Is Still Not Fully Tamed