ALBAWABA - The Organization of the Petroleum Exporting Countries (OPEC) has increased its projections for global oil demand in both the medium and long term in its annual outlook. OPEC states that investments totaling $14 trillion will be required to meet this demand, even with the growing use of renewable fuels and the increasing presence of electric vehicles on the roads.
OPEC's oil forecasts for 2023, released on Monday, differ from those of other entities, including the International Energy Agency, which anticipates that demand may reach its peak in this decade.
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The continued rise in consumption for another decade or more could provide a boost to OPEC, whose 13 member countries primarily rely on oil revenue. The group argues that oil should be a part of the energy transition, pointing to decisions made by some governments and companies to slow down the phase-out of fossil fuels.
OPEC expects global oil demand to reach 116 million barrels per day by 2045, approximately six million barrels per day higher than anticipated in last year's report. This increase will be led by China, India, other Asian nations, Africa, and the Middle East.
