Summer Travels To Elevate The Oil Demand In 2024

By Shubhendra Anand , 24 April, 2024

Oil consumption maintains a certain level, although oil prices are elevating at a standard rate in 2024. Organization of the Petroleum Exporting Countries (OPEC) suggests that global oil demand is expected to increase in the summer of 2024.

The surveys for the global oil market suggest that oil demand tends to increase in the summer of 2024 due to an increase in the number of travels from consumers. Consumer travel plans elevate the price of oil demands as transportation increases. According to OPEC suggestions, the second and third quarters 2024 will experience robust oil demand. This is due to consumers increasing the rate of travel in the months of summer. Oil prices are expected to increase in the summer of 2024 due to jet fuel consumption as the number of travels increases. However, increasing oil demand in 2024 will tighten the oil market. Elevating oil demands can lead to an increase in oil production rate. The oil market tightening will further be affected if OPEC does not opt to drop the cutbacks on oil supplies after July 2024.

According to surveys conducted in 2 204, OPEC expects oil demand to increase to 2.2 million barrels per day in 2024. Oil demand is expected to cross 1.8 million barrels per day by 2025. Therefore, the organization of petroleum exporting countries expects an increase in demand for oil throughout 2024 and extending till the end of 2025. However, cutbacks in oil supply from the oil-producing countries remain the primary problem. Therefore, geopolitical issues may serve as a hurdle in oil demand growth in 2024.

Expected range of oil prices in 2024