OPEC Lowers 2024 Oil Demand Growth Forecast Due to Weakness in Key Markets

LONDON, Nov 12– OPEC has cut its forecast for global oil demand growth in 2024, citing weaker-than-expected demand from China, India, and other regions.

In its latest report, OPEC revised its 2024 oil demand growth down to 1.82 million barrels per day (bpd), from the previous estimate of 1.93 million bpd. This marks OPEC’s fourth consecutive downward revision, as global oil consumption continues to face challenges.

China’s Slower Growth Impacts Global Outlook

OPEC’s downgrade is mainly due to slower growth in China. The group cut its 2024 oil demand forecast for China to 450,000 bpd, down from 580,000 bpd. This reflects ongoing weakness in the Chinese economy, including a decline in diesel use for the seventh month in a row.

OPEC+ Faces Challenges with Falling Oil Prices

The weaker demand outlook is a challenge for OPEC+ (OPEC and its allies like Russia), which had planned to increase oil production in December. However, due to falling prices, that plan has been delayed.

Overall, OPEC’s revised forecast shows that global oil demand growth in 2024 will be slower than expected, largely due to weaker economic conditions in major markets like China. OPEC will continue to monitor the market closely in the coming months.