OPEC Ups World Oil Demand Forecast Amid Electric Vehicle Hurdles

OPEC has raised its medium and long-term forecasts for world oil demand, attributing this to economic growth in India, Africa, and the Middle East, and a slower shift to electric vehicles. The organization's latest report expects global oil demand to reach 120.1 million barrels per day by 2050, significantly higher than other industry forecasts.

OPEC has increased its forecasts for world oil demand in both the medium and long term, as highlighted in its annual World Oil Outlook report. The organization attributes this rise to economic growth in regions such as India, Africa, and the Middle East, as well as a slower transition to electric vehicles and cleaner fuels.

OPEC Secretary General Haitham Al Ghais emphasized the organization's belief that future energy demand will be driven by the developing world, citing factors like population growth and urbanization. This has led OPEC to predict higher demand figures than other industry forecasters, including BP and the International Energy Agency.

OPEC foresees world oil demand reaching 118.9 million barrels per day by 2045, and 120.1 million barrels per day by 2050. In comparison, BP expects oil usage to peak in 2025 and fall to 75 million barrels per day by 2050. Despite the rise in electric vehicle adoption, OPEC's report suggests that vehicles powered by combustion engines will still dominate the market by mid-century.

(With inputs from agencies.)