OPEC has revised its global oil demand growth forecast downward for the third consecutive month, reflecting recent data and economic challenges. Key points include:
2024 Demand Growth Adjustment: OPEC now predicts an increase of 1.93 million barrels per day (bpd) in global oil demand for 2024, down from the previous estimate of 2.03 million bpd.
China’s Impact: The reduction is mainly attributed to a lowered growth forecast for China, now expected to grow by 580,000 bpd instead of 650,000 bpd. Economic challenges and a shift towards cleaner fuels are influencing this decline.
Economic Context: Diesel consumption has been affected by slowing economic activity, particularly in construction, and the substitution of liquefied natural gas (LNG) for diesel in heavy-duty trucks.
Future Projections: For 2025, OPEC has cut its demand growth estimate to 1.64 million bpd from 1.74 million bpd.
Market Reaction: Following the report, oil prices remained under pressure, with Brent crude trading below $78 a barrel.