OPEC+ lowers forecast for global oil demand growth for 2024
Date
9/11/2024 3:42:14 AM
(MENAFN) On Tuesday, OPEC+ revised its forecast for global oil demand growth downward for 2024, marking the second time the group has made a reduction this year. This adjustment aligns with the data the organization has been receiving since the beginning of 2024 and also includes a reduced outlook for demand growth in 2025.
These lowered forecasts emphasize the challenges the OPEC+ alliance, which includes OPEC members and allies such as Russia, is facing in trying to stabilize the oil market. Just last week, OPEC delayed its plans to increase oil production after prices dropped to their lowest levels of the year.
In its monthly report, OPEC stated that global oil demand is now expected to rise by 2.03 million barrels per day in 2024, down from the previous projection of 2.11 million barrels per day made last month. A significant portion of this reduction is due to lower demand expectations from China.
OPEC reduced its forecast for China's oil demand growth to 650,000 barrels per day for 2024, down from 700,000 barrels per day. The group noted that China, the world’s second-largest economy, is grappling with economic challenges and a shift toward cleaner energy sources. OPEC+ added that while China’s economic growth remains robust, issues in the real estate sector and the rise of natural gas-powered trucks and electric vehicles are expected to suppress future demand for diesel and gasoline. Following the report, oil prices fell further, with Brent crude slipping below USD70 per barrel, its lowest since December 2021.
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