OPEC Upgrades Economic Growth and Oil Demand Outlook

In its latest monthly report, OPEC has revised its global economic growth forecasts upward for 2024 and 2025, projecting a more optimistic outlook with expectations set at 2.7% and 2.9% respectively.

On the oil front, OPEC maintains a steady outlook for global oil demand growth, with projections holding firm at 2.2 million barrels per day (b/d) for 2024 and 1.8 million b/d for 2025. However, there’s a tweak in expectations for non-OPEC supply growth, which sees a downward revision to 1.2 million b/d in 2024, while remaining unchanged at 1.3 million b/d for 2025.

In terms of demand for OPEC oil, there’s a slight adjustment downwards, with anticipated figures now at 28.4 million b/d for 2024 and 28.8 million b/d for 2025.

Moreover, OPEC anticipates a reduction in its own oil production by 350 thousand b/d, reaching a projected low of 26.342 million b/d in January 2024. These adjustments reflect OPEC’s ongoing efforts to navigate the dynamic global energy landscape.