- OPEC reduced its 2024 oil demand growth forecast to 2.03 million barrels/day, down from 2.11 million barrels/day.
- China’s economic outlook remains a key factor, but the rise of electric vehicles and LNG trucks may limit demand for diesel and gasoline.
- OPEC revised its global economic growth forecast for 2024 upwards to 3%, while maintaining a 2.9% forecast for 2025.
Riyadh, September 10 (FinanceFlashNews.com) – The Organization of the Petroleum Exporting Countries (OPEC) has revised down its forecast for global oil demand growth for both 2024 and 2025, citing varying views on China’s economy and the ongoing transition to cleaner fuels. In its monthly report, OPEC stated that it now expects oil demand to rise by 2.03 million barrels per day in 2024, down from the 2.11 million forecast last month.
Factors Influencing Demand
OPEC highlighted differing opinions among analysts about China’s economic growth and the pace of the shift towards cleaner energy sources. The report noted that while China’s economy will continue to support oil demand, the increasing use of LNG trucks and electric vehicles could reduce future demand for diesel and gasoline.
For 2025, OPEC has lowered its oil demand growth estimate to 1.74 million barrels/day from 1.78 million barrels/day. Despite the reduction in demand forecasts, OPEC upgraded its outlook for global economic growth in 2024 to 3%, up from 2.9%, with the 2025 forecast remaining unchanged at 2.9%.
Economic Projections
OPEC also maintained its projections for U.S. GDP growth at 2.4% in 2024 and 1.9% in 2025. Eurozone GDP growth for 2024 was revised upwards to 0.8%, while the forecast for 2025 remained steady at 1.2%. China’s GDP is expected to rise by 4.9% in 2024 and 4.6% in 2025, in line with previous estimates, while Russia’s economy is projected to grow by 3.2% in 2024 before slowing to 1.5% in 2025.
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Keywords: OPEC, oil demand, global economy, China, LNG, electric vehicles, economic growth forecast, GDP, 2024
