The Organization of the Petroleum Exporting Countries (OPEC) has increased its projections for global oil demand in the coming year. The group believes that concerns over weak sentiment are unfounded and that the economy is more resilient than initially perceived. In its monthly oil-market report, OPEC states that it anticipates a daily increase of 2.5 million barrels in oil demand this year, a 100,000 barrel/day boost from last month’s estimate.
According to OPEC, global oil market fundamentals remain strong, contradicting negative sentiment around demand. The group emphasizes that recent data supports a continuation of robust global growth trends and a healthy oil market. OPEC attributes this positive outlook to stronger-than-expected growth in the United States and China. It has revised its U.S. economic growth forecast to 2.3% in 2023 and 0.9% in 2024, up from previous estimates of 2% and 0.7% respectively. Chinese demand is also described as “healthy,” with crude imports exceeding September’s figures by 240,000 barrels per day.
OPEC has maintained its forecast for 2024 demand at 2.2 million barrels per day. The International Energy Agency will release its corresponding report on Tuesday.