Oct 14, 2024, 11:44 PM
Oct 14, 2024, 10:49 AM

OPEC+ Reduces Global Oil Demand Outlook Again in October 2024

Provocative
Highlights
  • OPEC+ revised its 2024 global oil demand growth forecast to 1.93 million barrels per day, down from 2.03 million.
  • Crude oil prices fell following the report, with Brent crude at $77.99 and West Texas Intermediate at $74.65.
  • The adjustments in forecasts and production levels reflect the complexities of the global oil market and the challenges OPEC+ faces.
Story

In October 2024, OPEC+ released a monthly oil market report indicating a decline in global oil demand growth for the third consecutive month. The organization revised its forecast for oil demand growth in 2024 to 1.93 million barrels per day, down from 2.03 million barrels previously expected. Additionally, the forecast for 2025 was also lowered to 1.6 million barrels per day from 1.7 million. These adjustments were attributed to actual data received and lower expectations in certain regions. Following the report's release, crude oil prices fell, with Brent crude priced at $77.99 and West Texas Intermediate at $74.65. Although these prices are higher than the lows seen in early September, they remain insufficient for several OPEC+ member countries, which are set to restore oil output in December. Originally, OPEC+ planned to increase production by 180,000 barrels a day in October but reversed this decision to support falling prices. The report highlighted that three member nations—Iraq, Kazakhstan, and Russia—failed to meet their production cuts. Despite efforts to reduce output, both Iraq and Russia exceeded their respective ceilings, while Kazakhstan increased its output by 75,000 barrels per day. This situation underscores the challenges OPEC+ faces in balancing production levels with market demand and pricing stability. Overall, the ongoing adjustments in forecasts and production levels reflect the complexities of the global oil market and the impact of geopolitical and economic factors on oil demand.

Opinions

You've reached the end