OPEC Raises Global Economic Growth Expectations for 2024
In a bold move, OPEC has increased its global economy growth forecast for 2024 to 2.9 percent, up from the previous estimate of 2.8 percent. This announcement comes as a positive sign of optimism for the world economy.
Resilient Growth Momentum in Major Economies
The monthly report by OPEC highlighted the resilient growth momentum in major economies during the first half of the year. This trend is expected to continue in the coming months, providing a boost to the overall economic outlook.
Surpassing World Bank Forecast
OPEC’s economic projection surpasses a recent forecast by the World Bank, which predicted a global economic growth rate of 2.6 percent for 2024. The oil producers’ alliance remains confident in the strength of the global economy.
Steady Growth Predictions for 2025
Looking ahead, OPEC foresees the worldwide economy maintaining a steady growth pace of 2.9 percent in 2025, a projection that aligns with the previous month’s forecast. This consistency reflects the organization’s confidence in the economic outlook.
Oil Demand on the Rise
World oil demand is expected to increase by 2.25 million barrels per day in 2024 and 1.85 million bpd in 2025, according to OPEC’s report. This growth will be primarily driven by markets in China, the Middle East, India, and Latin America, signaling a positive trend for the oil industry.
Factors Influencing Oil Demand
OPEC emphasizes that world oil demand will be influenced by various factors, including economic developments in major economies. The organization remains vigilant in monitoring market fundamentals to ensure supply, stability, and resilience in the oil market.
Contrasting Views on Oil Demand Growth
While OPEC remains optimistic about the growth in oil demand, the International Energy Agency (IEA) predicts a slowdown in global oil demand growth in the coming years. The IEA forecasts a growth rate of 1 million bpd in 2024, highlighting differing perspectives on the future of the oil market.