Oil Demand Forecast Slashed: OPEC’S Struggle In A Shifting Energy Landscape
Date
9/10/2024 3:29:00 PM
(MENAFN- The Rio Times) The Organization of the petroleum Exporting Countries (OPEC) has trimmed its projections for global oil demand growth.
This adjustment comes amid economic uncertainties and evolving energy trends worldwide.
OPEC now anticipates demand to rise by 2.03 million barrels per day (bpd) in 2024, down from its previous forecast of 2.11 million bpd.
Similarly, the 2025 projection has been reduced to 1.74 million bpd from 1.78 million bpd. Despite these reductions, OPEC maintains that demand levels remain robust.
The organization points to strong air traffic, road mobility, and healthy industrial activities in non-OECD countries as supporting factors.
The oil market faces complex challenges. OPEC and its allies recently postponed plans to reverse voluntary production cuts of 2.2 million bpd. However, this move failed to bolster oil prices.
Brent crude futures have plummeted to their lowest closing levels since 2021, hovering around $71 per barrel.
This decline reflects growing concerns about China's economic growth and its impact on global oil demand.
Experts suggest that without long-term action from OPEC, oil prices may continue to face downward pressure. The organization grapples with the prospect of a supply surplus in the coming year.
OPEC's ability to maintain production restrictions is also under scrutiny. As its global market share diminishes, questions arise about the sustainability of its current strategy.
These developments highlight the delicate balance in the global energy market. OPEC's forecast revisions and production decisions ripple through economies worldwide, affecting everything from consumer prices to geopolitical dynamics.
As the world gradually shifts towards renewable energy sources, OPEC's role in shaping the global energy landscape continues to evolve.
The organization must navigate these changes while maintaining its influence in an increasingly complex market.
Oil Demand Forecast Slashed: OPEC's Struggle in a Shifting Energy Landscape
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