The Organization of the Petroleum Exporting Countries (OPEC) has confirmed its forecast for global oil demand growth. The organization projects an increase of 2.2 million barrels per day for this year. In its monthly report released on Wednesday, OPEC also maintained its forecast for global oil demand growth at 1.8 million barrels per day for 2025. Additionally, OPEC raised its global economic growth forecast for 2024 to 2.9 percent. The report highlighted that strong commuting and air travel in the Northern Hemisphere during the summer driving and vacation season are expected to boost demand for transportation fuels, particularly in the United States.
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However, expectations regarding the strength of demand growth in 2024 are diverging. This is partly due to differing views on the pace of the global transition to cleaner fuels. BP, for instance, stated earlier on Wednesday that it expects oil demand to peak next year. In contrast, OPEC remains optimistic about continued demand growth.
To support the market, the OPEC+ alliance, which includes OPEC and allies such as Russia, has been implementing a series of production cuts since late 2022. On June 2, the alliance agreed to extend its latest cuts of 2.2 million barrels per day until the end of September. There are plans to gradually phase these cuts out starting in October. These measures aim to stabilize the market amidst fluctuating demand expectations and the ongoing shift towards cleaner energy sources.