BAKU, Azerbaijan, January 23. Oil demand in Europe is expected to total 13.47 mb/d in 2024, Trend reports.
According to the latest outlook from OPEC, this shows a very low rise year-on-year - just about 0.06 mb/d.
As per OPEC's data, in October, oil demand in OECD Europe experienced a modest year-on-year increase of 42 tb/d, marking a reversal from three consecutive months of decline.
The upturn in demand was primarily driven by transportation fuels, buoyed by the ongoing recovery in air travel and robust driving activity, the bloc explains.
The region’s economy is expected to show a gradual recovery, which will support oil demand growth of an average of 58,000 b/d in 1Q2024.
As OPEC expects, the region is anticipated to witness an average year-on-year growth of 55,000 b/d for the year, primarily driven by an increase in transportation fuels.
Additionally, LPG and residual fuels are projected to experience an upswing. Nevertheless, diesel and naphtha are expected to maintain a subdued performance throughout the year, influenced by the decline in manufacturing and petrochemical activity, the report added.
Thus, the region's crude demand in 1Q2024 is forecast to stand at 13.16 mb/d and increase further to 13.6 mb/d in 2Q2024. The demand will most likely peak at 13.69 mb/d in 3Q2024, and decline subsequently to 13.43 mb/d by year-end.
Meanwhile, the overall world oil demand is expected to reach 104.4 mb/d in 2024, driven by robust demand in air travel, strong road mobility including on-road diesel and trucking, as well as vibrant industrial, construction, and agricultural activities in non-OECD countries.