OPEC Faces Challenges Amid Revised Oil Demand Forecasts

OPEC has once again lowered its forecast for global oil demand growth for this year and next, pointing to weak demand in China, India, and other regions. This marks the group's fourth consecutive downward revision for 2024. OPEC+ faces challenges due to decreasing prices and postponed output increases.

OPEC has revised its global oil demand growth forecast downward for the fourth time this year, citing weaknesses in China and India, as well as other regions. The latest revision poses a significant challenge for OPEC+, which includes major oil producers such as Russia.

In its monthly report, OPEC noted a decrease in the expected demand growth to 1.82 million barrels per day for 2024, down from a previous estimate of 1.93 million barrels per day. The organization also downgraded its 2025 growth forecast from 1.64 million to 1.54 million barrels daily.

The report highlighted China as a major factor in the 2024 forecast revision. Diesel demand in China has been under pressure due to slow construction and weak manufacturing activities. OPEC+ has postponed plans to raise output amidst these market challenges, further complicating the landscape for global oil production.

(With inputs from agencies.)