Daily Management Review

OPEC Continues To Project Oil Demand To Rise Through 2024 And In 2025


OPEC Continues To Project Oil Demand To Rise Through 2024 And In 2025
OPEC maintained its estimate that the world's oil demand will expand reasonably quickly in 2024 and predicted an earlier-than-usual "robust" increase in oil consumption in 2025, driven primarily by China and the Middle East.
In a monthly study, the Organisation of the Petroleum Exporting Countries predicted that in 2025, the global oil demand will increase by 1.85 million barrels per day. OPEC maintained its previous month's forecast of 2.25 million bpd of demand growth for 2024.
OPEC makes its initial projection for 2025 in its monthly report. According to OPEC, the goal of posting it sooner than normal is to give the market long-term direction.
"The undertaking to reach beyond the previously established time horizon of short-term forecasting serves to support the understanding of market dynamics," OPEC said in the report.
In comparison to other forecasters, such the International Energy Agency, OPEC has continuously predicted higher demand growth for 2024. Recent disagreements between the two have been centred on matters like long-term demand and the requirement to invest in new sources.
According to the OPEC report, Nigeria led a minor increase in OPEC oil production in December, even as the OPEC+ coalition as a whole continued to reduce output in order to support the market.
In light of Angola's announcement last month to withdraw from the group, OPEC reduced its production estimates.