Resilient global economy will lead to robust oil demand this year – OPEC
OPEC projects a robust oil demand growth this year as the global economy has shown “relative resilience,” its secretary general Haitham Al Ghais said.
PHOTO: OPEC's logo. Getty Images
Despite lingering concerns about weak oil demand growth due to the potential impact of ‘higher-for-longer’ interest rates in the US, OPEC has maintained an optimistic outlook on the global economy, which could lead to a potential surge in oil demand in 2024 and 2025.
“For 2024, oil demand growth is at 2.2 mb/d [2.2 million b/d], with total global demand anticipated to average 104.5 mb/d [104.5 million b/d]. For 2025, global oil demand growth forecast shows a further robust expansion of 1.8 mb/d y-o-y [1.8 million b/d year-on-year], averaging 106.3 mb/d [106.3 million b/d],” Al Ghais said while addressing the special session of the 141st meeting of OPEC’s Economic Commission Board on Monday.
Brent’s prices found some support from Al Ghais’ remarks, which came ahead of the coalition’s highly anticipated policy meeting on 2 June.
In its May monthly oil market report (MOMR), the oil producers' group noted that oil demand is expected to grow on the back of “more accommodative” monetary policies by major central banks in the second half of this year as well as a sharp growth trajectory in Asian economies including India and China.
By Aparupa Mazumder
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