By Alex Lawler and Fabio Teixeira
OPEC's 2024 World Oil Outlook predicts increased demand for oil in the medium and long term, driven by growth in India, Africa, and the Middle East. The organization believes that the shift to electric vehicles and cleaner fuels will be slower than previously anticipated.
In a statement released on Tuesday, OPEC stated that energy demand in the developing world is on the rise due to factors such as increasing populations, growing middle class, and urbanization. This outlook contrasts with other forecasts that predict a peak in oil consumption in the coming decade.
OPEC Secretary General Haitham Al Ghais emphasized the importance of continued oil consumption, highlighting the need for more investment in the sector. The organization expects global oil demand to reach 118.9 million barrels per day by 2045, with further growth projected beyond that.
While some analysts predict a decline in oil use over the next few decades, OPEC remains optimistic about the industry's future. The organization is calling for increased investment in the oil sector to meet growing demand.
Overall, OPEC's report suggests a positive outlook for the oil market, with demand expected to remain strong in the coming years. Investors and policymakers should take note of these projections and consider the potential impact on their financial strategies.