Oil demand will grow 2.25 million bpd: OPEC


OPEC+ had earlier agreed to keep current oil production levels unchanged….reports Asian Lite News

 The Organisation of the Petroleum Exporting Countries (OPEC) said on Thursday that world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025, Reuters reported.

In its monthly report, OPEC predicted robust fuel use in the summer months and stuck to its forecast for relatively strong growth in global oil demand in 2024, highlighting an unusually large gap between predictions of oil demand strength.

Meanwhile, OPEC+ had earlier agreed to keep current oil production levels unchanged.

During the meeting which took place via videoconference today, the JMMC reviewed the crude oil production data for the months of January and February 2024, noting to the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).

The Committee welcomed the Republic of Iraq and the Republic of Kazakhstan pledge to achieve full conformity as well as compensate for overproduction. The Committee also welcomed the announcement by the Russian Federation that its voluntary adjustments in the second quarter of 2024 will be based on production instead of exports.

The JMMC stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by 30th April 2024.

The Committee noted that it will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4th June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023, and the subsequent adjustments in November 2023 and February 2024.

The Committee further stated that it will continue to closely assess market conditions and noted the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries.

The next meeting of the JMMC (54th) is scheduled for 1st June 2024.

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