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[News] OPEC Revises Down Global Oil Demand for This Year and Next Again
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.
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[News] OPEC Delays Production Increase by One Month, Triggering Oil Price Rebound
OPEC+ announced on November 3 an extension of its voluntary production cut of 2.2 million barrels per day for an additional month, resulting in a short-term rebound in oil prices.
Recently, due to a global demand slowdown, the three major energy agencies have all downgraded their forecasts for global oil demand in 2025, with particularly significant declines anticipated in China and OECD countries. Additionally, recent Israeli attacks on Iran did not impact OPEC’s oil facilities, easing market concerns over Middle Eastern geopolitical risks, which has contributed to a sustained decline in oil prices over recent months.
Amid the continued weakness in oil prices, OPEC had previously extended its production cut measures from June to September and then further to November and December. Although this latest extension of production cuts reduces supply in the short term and provides temporary support to oil prices, the potential for future production increases could exert greater downward pressure on a market where demand is expected to remain relatively weak in the medium to long term.
As of November 4, WTI crude oil futures prices rose by 3.49% to $71.46 per barrel, while Brent crude oil futures prices increased by 2.71% to $75.08 per barrel.
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