OPEC on Tuesday stuck to its forecasts for robust growth in global oil demand in 2023 and 2024 citing signs that major economies are faring better than expected despite headwinds.
World oil demand will rise by 2.25 million barrels per day (bpd) in 2024, compared with growth of 2.44 million bpd in 2023, the Organization of the Petroleum Exporting Countries said in a monthly report.
Both forecasts were unchanged from last month.
A lifting of pandemic lockdowns in China has helped oil demand rise in 2023. OPEC has maintained a relatively upbeat view on 2024, seeing stronger demand growth than other forecasters such as the International Energy Agency.
The ongoing global economic growth is forecast to drive oil demand, especially given the recovery in tourism, and air travel, OPEC said in the report.
"Pre-COVID-19 levels of total global oil demand will be surpassed in 2023."
Oil demand collapsed in 2020. OPEC has been consistently saying it would recover and said in the report demand would average 102.1 million bpd in 2023, above the pre-pandemic rate during 2019.
OPEC and its allies, known as OPEC+, began limiting supplies in 2022 to bolster the market. Global benchmark Brent crude breached $90 a barrel last week for the first time in 2023 after Saudi Arabia and Russia extended voluntary cuts until the end of the year.
Brent crude prices rose as high as $91.82 a barrel after the report was released, hitting a fresh 2023 high.
OPEC held its forecast for world economic growth this year at 2.7% and kept next year's figure at 2.6% citing a resilient first half and a steady global growth trend that had continued into the third quarter.
"Emerging Asia, particularly India, Brazil, and Russia, could further surprise to the upside," OPEC said.
"Moreover, if the US continues to keep its current momentum, growth could turn out to be higher than expected."
The OPEC report also showed OPEC oil production rose in August driven by a recovery in Iran's production despite US sanctions remaining in place on Tehran and Saudi Arabia's voluntary cuts, as well as an increase in Nigeria.
OPEC output rose by 113,000 bpd in August to 27.45 million bpd, the report said.
US crude inventories are expected to fall by about 2 million barrels in the week ending on September 8, a preliminary Reuters poll showed on Monday.
The European Central Bank is also expected to announce its interest rate decision on Thursday.
On Monday, the European Commission forecast the eurozone to grow more slowly than previously expected in 2023 and 2024.
