OPEC raises global economic growth rate projection to 2.9%

OPEC has raised its global ⁧‫economy‬⁩ growth expectations in 2024 to 2.9 percent, from a previous forecast of 2.8 percent.

In its monthly report, the organization noted that growth momentum in major economies remained resilient in the first half of the year, and this trend is likely to continue in the coming months.

The economic projection by the oil producers’ alliance is slightly higher than a recent forecast by the World Bank.

In June, the international financial institution projected that global economic growth would hold steady at 2.6 percent in 2024.

In its latest analysis, OPEC further highlighted that the worldwide economy would continue growing at a steady pace of 2.9 percent in 2025, a forecast unchanged from last month.

The report added that world oil demand will rise by 2.25 million barrels per day and 1.85 million bpd in 2024 and 2025, respectively, also unchanged from the previous month’s projection.

According to the report, this oil demand growth will be driven by markets including China, the Middle East, India, and Latin America.

“Total world oil demand is anticipated to reach 104.5 million bpd in 2024, bolstered by strong demand for air travel and healthy road mobility, including trucking,” said OPEC.

The alliance further noted that the demand will also be driven by industrial, construction and agricultural activities in non-Organization for Economic Co-operation and Development countries.

Additionally, petrochemical capacity additions in non-OECD countries could catalyze international oil demand growth.

OPEC also cautioned that world oil demand will depend on various factors, including future economic developments in major economies.

In June, Haitham Al-Ghais, the secretary-general of OPEC, also predicted continued growth in oil demand, propelled by a rebound in the travel sector.

During his speech at the International Economic Forum, he noted that OPEC is always concentrating on market fundamentals to ensure supply, stability and resilience.

“It is important to remain focused on the fundamentals. We look at economic growth, We look at supply, we look at demand, and yes, we do still believe demand for oil is good and resilient,” said Al-Ghais.

He added: ‘Last year, OPEC’s forecast for oil demand was the best. And all those who criticized OPEC’s forecast kept adjusting their number throughout the year.”

However, in the same month, the International Energy Agency said that global oil demand growth is expected to slow in the coming years as the planet continues its energy transition journey.

According to IEA, the world will witness an oil demand growth of 1 million bpd in 2024.