OPEC Remains Optimistic About Oil Demand

The Organization of the Petroleum Exporting Countries (OPEC) maintained its optimism regarding the future of global oil demand despite economic challenges, raising its expectations for demand growth in 2023, with only a slight slowdown anticipated in the following year. China and India continue to lead growth in fuel usage. OPEC predicted in its monthly report that "global oil demand will grow by 2.25 million barrels per day, or 2.2 percent, in 2024, down from a growth of 2.44 million barrels per day in 2023." The organization raised its expectations for demand growth in 2023 by 90,000 barrels per day compared to last month's report. OPEC noted in the report that the proactive approach of OPEC+ and production cuts have added significant stability to the global oil market, "which is expected to lead to continued strong market fundamentals observed this year into 2024." It added, "In 2024, strong global economic growth, amid ongoing improvements in China, is expected to increase oil consumption."