The world oil demand will grow by a healthy 2.2 million to 104.25 million barrel per day (mb/d), in 2024, said the Organisation of the Petroleum Exporting Countries (Opec) in its review, thus raising its 2023 forecast to 2.4 mb/d, following an upward revision of about 0.1 mbn/d from last month's assessment.

 

In its Monthly Oil Market Report, the global organisation said the World GDP growth in 2024 is forecast at 2.5 per cent, slightly below this year’s expected growth level of 2.6 per cent.

 

"Key oil-consuming countries, including China and India, along with some other developing economies in Asia, will continue their healthy growth levels and be responsible for around half of next year’s global economic growth," stated Opec. 

 

"This is under the assumptions that general inflation will continue retraction in the secondd half of this year and 2024. Tight monetary policies are also assumed to continue and key policy rates to peak by the end of 2023. Moreover, central banks are expected to engage in more accommodative monetary policies by H2 2024," he added.

 

According to Opec, the world economic growth in 2023 is to remain broadly unchanged at 2.6 per cent, with the initial forecast for 2024 economic growth expected at 2.5 per cent.

 

Demand for Opec crude in 2023 is revised up in the report by 0.1 mb/d from the previous month’s assessment to stand at 29.4 mb/d. This is around 1.0 mb/d higher than in 2022. 

 

Based on the initial world oil demand and non-Opec supply forecast for 2024, demand for the Opec crude is expected to reach 30.2 mb/d, 0.8 mb/d higher than the 2023 level, it added.