OPEC Revises Global Oil Demand Projections Amidst Economic Challenges

OPEC lowered its global oil demand growth forecast for 2024, citing economic challenges and a shift towards cleaner fuels. The revision, primarily due to decreased demand from China, underscores ongoing uncertainties in the oil market. OPEC+ continues to navigate production adjustments amid fluctuating prices and geopolitical tensions.

The Organization of the Petroleum Exporting Countries (OPEC) has adjusted its global oil demand forecast for 2024, marking the third consecutive downward revision this year. This latest update reflects pressing economic challenges and a growing global pivot towards cleaner fuel alternatives.

In its monthly report, OPEC projected a rise in world oil demand by 1.93 million barrels per day (bpd) for 2024, a decrease from the previous estimate of 2.03 million bpd. The reduction is largely attributed to declining demand from China, where slowed economic activity and a move to more sustainable energy practices have impacted oil consumption.

OPEC, along with its allies in the OPEC+ group, continue to fine-tune production strategies amidst ongoing market volatility. Unrest in Libya and production cuts in Iraq have caused noticeable decreases in output, highlighting the uncertainties that the oil industry faces. The International Energy Agency (IEA), which has a more conservative outlook on demand growth, is set to release its updated forecast figures, adding another layer to the complex dynamics influencing the global oil market.

(With inputs from agencies.)