OPEC keeps oil demand growth forecast steady at 2.2 million b/d for 2024
Global oil demand is projected to reach 104.5 million b/d in 2024, largely consistent with OPEC's previous month's assessment.
PHOTO: An oil pumpjack with the OPEC logo in the background. Getty Images
In its June oil market report (MOMR), the Organisation of the Petroleum Exporting Countries (OPEC) has kept its global oil demand growth forecast unchanged at 2.2 million b/d this year.
The Saudi Arabia-led group anticipates global oil consumption to rise by 2.3 million b/d in the second half of this year, driven by demand growth in emerging economies such as China.
Oil demand in non-OECD countries, including China and India, is expected to increase by about 2 million b/d to reach 58.4 million b/d in 2024, while in the OECD group of developed countries, demand is expected to reach 45.9 million b/d in 2024, OPEC said.
The Vienna-headquartered group maintained its global oil demand growth projection of 1.8 million b/d in 2025 to reach 106.3 million b/d.
Demand for crude produced by the countries participating in the Declaration of Cooperation (DoC) is expected to stand at about 43.2 million b/d in 2024, consistent with the previous month’s estimates.
Supply projections
The 12 core-OPEC members produced 26.63 million b/d of crude oil in May, about 29,000 b/d higher than April’s production levels. “Crude oil output increased mainly in Nigeria, Gabon and Equatorial Guinea, while production in Saudi Arabia, Kuwait, Libya and Congo decreased,” OPEC said.
Total production from OPEC members within the DoC fell by 123,000 b/d in May to 40.92 million b/d, while non-OPEC countries, which include members of the OPEC+ alliance or participants in the DoC, fell by 152,000 b/d to 14.29 million b/d in May.
Crude oil production in Russia, a non-OPEC DoC producer, fell by 119,000 b/d to 9.18 million b/d in May, according to the report.
The oil-producers group expects non-DoC liquid supply to grow by 1.2 million b/d this year, unchanged from its previous assessment. Canada, Brazil, Norway and the US are expected to be the “main drivers” for this growth.
The DoC comprises the core 12 OPEC member countries, along with Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, and Sudan. Together, these countries form the group also commonly known as OPEC+.
By Aparupa Mazumder
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