ALBAWABA – The Organization of the Petroleum Exporting Countries (OPEC), an organization enabling the cooperation of leading oil-producing and oil-dependent countries to collectively influence the global oil market and maximize profit, said it is expecting oil demand will rise to 120 million barrels per day by 2050.
OPEC foresees oil demand increase
The organization announced that global oil demand is expected to rise to 118.9 million barrels per day by 2045, and 120.1 million barrels per day by 2050, surpassing their expectations in their 2024 report.
In its 2024 World Oil Outlook, OPEC emphasized the need for increased investment in the oil industry, estimating that the sector will require nearly $17.4 trillion by 2050. This shows a significant increase from the $14 trillion projected for 2045 in last year’s report.
It is worth noting that OPEC raised its forecasts in response to easing inflationary pressures and newest cuts in interest rates. (Shutterstock)
OPEC Secretary General Haitham Al Ghais said: “Future energy demand is found in the developing world due to increasing populations, middle class, and urbanization. There is no peak oil demand on the horizon. Over the past year, there has been further recognition that the world can only phase in new energy sources at scale when they are genuinely ready."
It is worth noting that OPEC raised its forecasts in response to easing inflationary pressures and the newest cuts in interest rates. Additionally, Brent crude futures increased by $1.27 (1.72%) to reach $75.17 per barrel, while US crude futures rose by $1.19 (1.69%) to settle at $71.56 per barrel.
OPEC expects global oil demand to reach 111 million barrels per day by 2028 and 112.3 million barrels per day in 2029. The organization also anticipates that the number of vehicles on the road will rise to 2.9 billion by 2050, an increase of 1.2 billion from 2023.
