As the world’s leading investment manager and financial market journalist, I am here to break down OPEC’s latest forecast for global oil demand growth in 2024. According to the monthly report released by the Organization of the Petroleum Exporting Countries, world oil demand is expected to rise by 2.11 million barrels per day (bpd) in 2024, a slight decrease from the previous estimate of 2.25 million bpd.
The revision is based on actual data received for the first and second quarters of 2024, as well as softer expectations for China’s oil demand growth. Despite a slow start to the summer driving season, transport fuel demand is expected to remain solid due to healthy road and air mobility.
There is a divergence in forecasts for oil demand growth in 2024, with differences over China and the pace of the world’s transition to cleaner fuels. OPEC’s revised estimate still places them at the top end of industry estimates.
In addition to the 2024 forecast, OPEC also adjusted next year’s demand growth estimate to 1.78 million bpd, down from the previous expectation of 1.85 million bpd.
Analysis: This update from OPEC provides valuable insights for investors and individuals looking to understand the dynamics of the global oil market. The revision in demand growth forecasts can impact oil prices and investment decisions in the energy sector. It is important to monitor these developments closely and stay informed about the evolving trends in the oil industry to make informed financial decisions.