[News] OPEC Revises Down Global Oil Demand for This Year and Next Again

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Global oil demand for this year and next has been revised downward for the fourth time by OPEC, according to its report released on November 12.

The report states that the OECD has reduced its 2024 global oil demand growth forecast by 107 thousand barrels per day (tb/d) to 1.8 million barrels per day (mb/d), reflecting weaker-than-expected consumption data from China, India, and Africa. The 2025 demand growth forecast was similarly lowered by 103 tb/d to 1.5 mb/d.

(Source: OPEC)

 

Amid continued downward revisions by the three major oil organizations for this year and next, oil prices have been declining over the past few months. Furthermore, if a Trump administration reinforces support for traditional energy sources, it could sustain high U.S. oil supply levels, putting further downward pressure on medium-to-long-term oil prices.

(Source: EIA)

 

In response to the low-price environment, OPEC member countries have once again postponed plans to restore production increases to December, marking the second delay this year. As of now, WTI crude stands at $68.04 per barrel, while Brent crude is at $71.83 per barrel.

 

• MOMR November 2024