OPEC reports oil demand growing


OPEC reports oil demand growing

OPEC on Tuesday stuck to its forecasts for robust growth in global oil demand in 2023 and 2024 citing signs that major economies are faring better than expected despite headwinds such as high interest rates and elevated inflation.

World oil demand will rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023, the Organization of the Petroleum Exporting Countries said in a monthly report.

The report is consistently with opinions the company gave last month, expressing that though sentiment toward oil usage may be changing, the demand is higher than ever.

“The ongoing global economic growth is forecast to drive oil demand, especially given the recovery in tourism, air travel and steady driving mobility,” OPEC said in the report. “Pre-COVID-19 levels of total global oil demand will be surpassed in 2023.”

Oil demand collapsed in 2020, prompting some predictions of an early peak in world oil use. OPEC has been consistently saying it would recover and said in the report demand would average 102.1 million bpd in 2023, above the pre-pandemic rate during 2019.

OPEC and its allies, known as OPEC+, began limiting supplies in 2022 to bolster the market.

A strategy which has evidently worked, according to the reinvigoration in the marketplace.