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OPEC Forecasts Robust Fuel Use Amid Global Economic Growth Prospects

In a monthly report released on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) has maintained its projection for strong global oil demand in 2024, anticipating a rise of 2.25 million barrels per day (bpd) this year and a further increase of 1.85 million bpd in 2025. 

This forecast remains unchanged from the previous month’s report.

Despite acknowledging potential downside risks, OPEC expressed optimism regarding the possibility of stronger-than-expected global economic growth in 2024, which could provide additional momentum to oil prices. 

This comes as oil prices have surged above $90 a barrel in 2024 due to tightened supply and ongoing conflicts in the Middle East.

OPEC and its allies, collectively known as OPEC+, recently agreed to extend oil output cuts until the end of June, aiming to support oil prices amidst supply constraints. 

However, the group will convene in June to assess whether further output adjustments are necessary.

According to the report, OPEC’s oil production remained steady in March, reaching 26.60 million bpd, despite the implementation of voluntary output cuts by OPEC+ members since January.

“The robust oil demand outlook for the summer months warrants careful market monitoring, amid ongoing uncertainties, to ensure a sound and sustainable market balance,” stated the OPEC stated.

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