Due to less optimistic data for the first half of the year and lower expectations for China, OPEC on Monday lowered its prediction for the increase of the world’s oil consumption in 2024. It also decreased its prediction for the following year.
In a monthly report, the Organization of the Petroleum Exporting Countries predicted that global oil consumption will increase by 2.11 million barrels per day in 2024, as opposed to the 2.25 million bpd growth predicted last month.
As per OPEC’s report, “this minor alteration represents factual information obtained for the initial quarter of 2024 and, in certain instances, for the subsequent quarter, along with diminishing anticipations for China’s oil consumption expansion in 2024.”
“Due to healthy road and air mobility, transport fuel demand is expected to remain solid despite the summer driving season getting off to a slower start than it did last year.”
Since it was first released in July 2023, OPEC’s 2024 projection has now been lowered for the first time. Due to disagreements on China and, more generally, the rate at which the world is moving toward cleaner fuels, forecasters are less in agreement than normal regarding the strength of rise in oil demand in 2024.
OPEC is still at the upper range of industry projections despite the drop. Following the report’s release, oil prices remained stable, hovering around $80 per barrel.
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