OPEC cuts ’24 global oil demand forecast

The Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2024, marking the fourth consecutive downward revision.

The weaker outlook reflects concerns about slower economic growth in major oil-consuming countries, particularly China and India.

In its monthly report released on Tuesday, OPEC projected that global oil demand will increase by 1.82 million barrels per day in 2024, down from the 1.93 million bpd forecast in the previous month.

The downward revision is primarily attributed to a weaker-than-expected outlook for China’s oil demand, which has been impacted by a slowdown in construction activity and weak manufacturing performance.

The decline in diesel consumption in China for seven consecutive months has further contributed to the reduced demand forecast.

The OPEC+ group, which includes OPEC members and allies like Russia, postponed a planned output increase in December due to falling oil prices. The weaker demand outlook adds to the challenges faced by OPEC+ in balancing supply and demand.

While some analysts remain optimistic about global oil demand growth, others are more cautious, citing concerns about a potential economic slowdown and the accelerating transition to cleaner energy sources.

Attribution: Reuters

Subediting: M. S. Salama