OPEC sticks to 2024 oil demand view, sees more growth in 2025

Jan. 17, 2024

OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2024 and said 2025 will see a “robust” increase in oil use, led by China and the Middle East, in an earlier than usual prediction.

The Organisation of the Petroleum Exporting Countries, in a monthly report, said world oil demand will rise by 1.85 million barrels per day in 2025. For 2024, OPEC sees demand growth of 2.25 million bpd, which was unchanged from last month.

The 2025 prediction is OPEC’s first in its monthly report. OPEC said publishing it earlier than usual is aimed at providing long-term guidance for the market.

“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.

OPEC has consistently forecast stronger demand growth for 2024 than other forecasters, such as the International Energy Agency. The two have clashed in recent years over issues such as long-term demand and the need for investment in new supplies.

The OPEC report also noted that OPEC oil production rose slightly in December led by Nigeria, despite ongoing output cuts by the wider OPEC+ alliance to support the market.

OPEC adjusted its production figures lower to reflect the exit from the group of Angola, announced by Luanda last month.

REUTERS