OPEC holds production forecasts, plans to use OPEC+ outlook

OPEC held global oil demand forecasts on Tuesday, adding that there was some upside potential for economic growth this year and beyond, and said it would also start using production from the wider OPEC+ group for forecasts.

The Organisation of the Petroleum Exporting Countries said it expected world oil demand to rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025.

"Despite certain downside risks, the continued momentum observed since the start of the year could create additional upside potential for global economic growth in 2024 and beyond," OPEC said in the report.

The group also said it would no longer publish a calculation global demand for its own crude and would focus on demand for oil from OPEC+. The wider group includes Azerbaijan, Bahrain, Brunei, Brazil, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.

The move "demonstrates solidarity and unity" within the OPEC+ framework, OPEC said, as well as removing the "potential for misunderstanding". The two groups have been working together since 2016 through a pact called the Declaration of Cooperation.

Reporting by Frank Prenesti for Sharecast.com