OPEC Oil Demand Forecast Points to Longer Fight Over Energy Costs and Inflation

OPEC is forecasting that global oil demand will keep rising through 2050, reaching roughly 124 million barrels per day, with no peak in sight. The projection matters beyond energy markets because oil prices feed directly into transportation, shipping, aviation, food costs and consumer inflation.

The forecast contrasts with the International Energy Agency, which expects demand to plateau around 105.5 million barrels per day by the end of the decade.

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For the economy, the biggest risk is not simply higher oil demand. It is tighter supply if investment fails to keep up. OPEC argues the industry will need major long-term investment to meet future consumption. That could affect gasoline prices, airline fares, freight costs and inflation expectations.

If OPEC is right, oil remains a major economic force for decades. If the IEA is right, the market could face oversupply instead. Either way, energy forecasts are now central to the inflation debate.

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