OPEC sees strong oil demand growth in 2024

Vienna, Feb 13, 2024 -The OPEC oil cartel said Tuesday it expects robust economic activity in China and air travel to drive strong global demand growth for oil this year.

Its outlook contrasts that of the International Energy Agency (IEA), which advises oil-consuming nations, which last month predicted that oil demand growth would halve on economic headwinds.

OPEC estimated global oil demand will grow by 2.2 million barrels per day (bpd) in 2024, whereas the IEA projected demand growth would decrease to 1.2 million bpd.

“This is reflecting the robust economic growth expected this year,” OPEC said in its monthly report.

“Continued robust economic activity in China, global air travel recovery and expected healthy petrochemical feedstock requirements will be key for oil demand growth in 2024.”

In terms of products, transport fuels are driving demand. Gasoline consumption is expected to “exceed” pre-pandemic levels, while jet fuel is projected to average “just below” the levels seen in 2019, according to OPEC. Meanwhile, the IEA sees lacklustre global economy along with tighter fuel efficiency standards and growth in electric vehicles as limiting growth in demand for oil.

OPEC still cautioned that “inflation levels, monetary tightening measures and sovereign debt levels could weigh on global oil demand prospects in the current year.”

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