OPEC maintains its forecast of oil demand growth through 2050

According to the latest World Oil Outlook by the Organization of the Petroleum Exporting Countries, or OPEC, global demand for crude will grow by about 19% to reach about 123 million barrels per day (bpd) by 2050. This is about 3 million bpd more than projected in the September report.

India is expected to be the main driver of consumption increase. In addition, the market prospects are set to be supported by US President Donald Trump's decision to withdraw from the Paris climate agreement.

The Bloomberg agency drew attention to the ambiguity of such assessments. Other major organizations, including BP, the International Energy Agency, and Wood Mackenzie, anticipate a slowdown in demand growth over the next ten years. They base their forecasts on an expected weakening of consumption in China. However, oil demand has continued to grow in recent years.

Against this backdrop, OPEC has been increasing supplies over the recent months, gradually lifting voluntary restrictions on production. At the same time, the market reaction, showing no price fall after the increase in supply, allows one to consider this step justified, at least in the short term.