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OPEC holds firm on 2024 oil demand growth forecast

The Organization of the Petroleum Exporting Countries (OPEC) maintains its robust oil demand forecast for 2024, unchanged from last month. OPEC+ predicts global oil demand to grow by 2.25 million barrels per day, driven by expectations of continued economic expansion and a resurgence in air travel.

Yahoo Finance senior business reporter Ines Ferr breaks down the details from OPEC's latest report, as well as the International Energy Agency's (IEA) own oil demand outlook.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith

Video transcript

Checking in on oil.

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OPEC sticking to its relatively strong growth forecast for 2024 and next year.

Yahoo Finance's Inez fare joins us now with the details.

Anne Yeah, Josh and OPEC stuck with its forecast for oil demand growth of 2.2 million barrels per day for this year, unchanged from last month, and basically saying that economic growth and air travel will support fuel demand during the summer months and also during the holiday season.

Transportation fuels are expected to drive growth here in the US.

Manufacturing and petrochemical production is also expected to support demand for natural gas liquids.

For example, However, it's really important to just take a step back and take a look at where these oil forecasts are coming because guys, its forecasts have really been split more widely than ever of where oil demand is going in the coming years.

In part that has to do with the energy transition and how fast the oil industry believes that that that transition will be happening.

BP, for example, put out an energy outlook report this week which said that oil demand would peak in 2025 at 102 million barrels per day.

And that report says that wind and solar will grow and oil demand will fall once that peaks under two different scenarios.

Basically, that has to do with the pace of falling oil use in road transportation.

But meanwhile, you have the International Energy Agency, which pushes for greener energies.

It expects lower 2024 growth demand than OPEC.

It expects that growth to be at around 960,000 barrels per day.

Its update is coming out this week, and then you have the IE A, which expects also the peak demand by 2029 at around 100 and 6 million barrels per day.

By the way, on that peak demand, OPEC still does not not have peak demand in their horizon, obviously, right?

I mean, you would expect that they don't see peak oil demand by the end of this decade.

So you really have to take a look at all of these forecasts.

They are diverging more and more and just take a look at Where is it coming from?

What's their, um, outlook for the future, given where they're at, consider the source.

Always.

When you were talking about these forecasts, thanks a lot, you know, appreciate it