In its latest monthly report, the Organization of the Petroleum Exporting Countries and allies (OPEC+) maintained its forecast for strong growth in global oil demand in 2024. OPEC+ expects global demand for oil to increase by 2.25 million barrels per day (bpd) in 2024 and 1.85 million barrels per day in 2025. It kept both forecasts unchanged from last month.
Meanwhile, the International Energy Agency (IEA) expects oil demand to peak by 2030. Moreover, it expects demand to grow only 1.2 million barrels per day in 2024.
This is the last report OPEC+ issues before it meets on June 1 to discuss the possibility of extending voluntary oil output cuts into the second half of the year.
OPEC+ has implemented multiple oil output cuts since 2022 to support market prices. The latest cut of 2.2 million barrels per day remains in place until the end of June unless the alliance decides to extend cuts.
Notably, OPEC revealed that it will stop publishing figures of global demand for its own crude and will shift to focusing on demand for oil from OPEC+, reinforcing its Declaration of Cooperation (DoC) pact which it announced in 2016.
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The report also reveals that OPEC projected demand for DoC crude to reach 43.2 million barrels per day in 2024 compared to global oil demand of 104.5 million million barrels per day. Moreover, the report reveals that the group produced 41.02 million barrels per day in April, below demand expectations. Meanwhile, OPEC produced 26.58 million barrels per day in April, a 48,000 barrel per day decrease.
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