Energy watchdogs see increased oil demand in 2024

PARIS, January 18, 2024 – Both OPEC and the International Energy Agency (IEA) have forecast a rise in global oil consumption in 2024, Reuters reported on Thursday.

The IEA has raised its estimate to an increase of 1.24 million bopd in 2024, while OPEC foresees a rise in demand of 2.25 million bopd in 2024 with the expectation that oil demand will reach 106 million bopd in 2025.

The IEA’s January statement cited economic growth, lower oil prices and China’s growing petrochemicals sector as reasons for its raised projections.

OPEC+ extended its oil production cuts into 2024 at the end of last year.

Under the December ruling, Saudi Arabia will extend its cuts of 1 million bopd and Russia will curb production by 300,000 bopd and exports by 200,000 bopd.

Other members will also cut production, including Iraq by 233,000 bopd, the UAE by 163,000 bopd, Kuwait by 135,000 bopd, Kazakhstan by 82,000 bopd, Algeria by 51,000 bopd and Oman by 42,000 bopd.

The group members’ output is currently around 43 million bopd, with cuts of around 5 million bopd.

In September 2023, the IEA predicted that demand for oil, gas and coal will peak before 2030 due to the rapid growth of renewables and electric vehicles.

Read our latest insights on: