Oil demand globally set to grow by 2024, OPEC says

NAIROBI, Kenya - The Organization of the Petroleum Exporting Countries forecasts robust oil demand in 2024 as the outlook for world economic growth slightly improves. 

The OPEC said it expects world oil demand to rise by 2.25 million barrels per day in 2024, compared with growth of 2.44 million bpd in 2023. Both forecasts were unchanged from last month.

The majority of the oil producer groups are positive as global oil prices have reached the highest since January. Tight supply has given impetus to the rally and OPEC’s monthly report also showed Saudi Arabia delivered on a voluntary output cut in July.

“In 2024, solid global economic growth amid continued improvements in China is expected to boost the consumption of oil,” OPEC said in the report. 

“Prospects for healthy oil fundamentals in the second half of the year, along with the pre-emptive, proactive, and precautious approach of OPEC and non-OPEC producing countries to assess market conditions and take necessary measures at any time and as needed, will ensure the stability of the global oil market.” 

OPEC and its allies, together known as OPEC+, began limiting supplies in late 2022 to bolster the market and in June extended supply curbs into 2024. Tighter supply has underpinned a rally in oil prices, with Brent crude trading above $88 a barrel on Thursday, its highest since January. 

The report also showed OPEC’s oil production fell sharply in July, driven by Saudi Arabia's pledge to cut its output by 1 million bpd, a measure it has since extended to include September.

GAROWE ONLINE