Nigeria may be better position for higher gains following the projections of the Organisation of the Petroleum Exporting Countries (OPEC) that global oil demand will increase this year and in 2026.
According to the organisation of petroleum exporters, the global oil demand growth rate is expected at 1.4 million barrels per day (mb/d) in 2025, with a similar growth rate expected in 2026.
Investors King reports that this discovery is contained in OPEC’s latest monthly report for January 2025, released on Wednesday.
The report further revealed that the demand in the region of the Organisation for Economic Cooperation and Development (OECD) is expected to grow by 0.1 mb/d, while the non-OECD region is expected to drive demand growth by accounting for 1.3 mb/d of the total increase in both 2025 and 2026.
According to the report, “On a regional basis, OECD oil demand is forecast to expand by around 0.1 mb/d, y-o-y, entirely from the Americas, while non-OECD oil demand is expected to witness growth of around 1.3 mb/d, mostly in India, China, Other Asia, the Middle East, and Latin America.”
Among other factors, the growth projection is hinged on an anticipated growth in the global economy which is expected to grow by 3.1% in 2025 and 3.2% in 2026.
OPEC stated that the projected growth in the world economy is to be driven by steady growth in major economies, including the US, Eurozone, and Japan.
Also, non-OECD economies, particularly China and India, are projected to sustain their robust growth, contributing significantly to global economic expansion.
“Gasoline requirements are also set to see support from steadily rising road mobility in major consuming countries and regions, such as China, the Middle East, India and the US. Both on-road diesel, including trucking, as well as industrial, construction and agricultural activities in non-OECD countries are expected to support diesel demand. Light distillates are projected to be supported by petrochemical capacity additions and margins, mostly in China and the Middle East,” the report added.
On the supply side, non-OPEC liquids production is expected to grow by 1.1 mb/d in 2025 and 2026, driven primarily by the United States, Brazil, Canada, and Norway.
OPEC also reported that crude oil production by countries participating in the Declaration of Cooperation (DoC) dropped by 14,000 barrels per day (tb/d) in December to an average of 40.65 mb/d.
Meanwhile, experts have argued that Nigeria is well-positioned to tap into the projections.
They, however, noted that even though the Federal Government of Nigeria has expressed readiness to boost the country’s crude oil production above 2 million bpd to exceed its OPEC quota of 1.5 million bpd, there is no concrete steps to make this desire fruitful.
They remarked that if oil production is increased, Nigeria would be exporting higher to the countries on high demand of the product, consequently making more money for the country.
The analysts charged the Federal Government to take advantage of the current distortion in global oil demand and make more financial gains for Nigeria.