Share Prices & Company Research

Market News

10 Sep 2024 | 12:43

OPEC trims oil demand forecast again as crude prices sink

(Sharecast News) - The Organization of the Petroleum Exporting Countries has reduced its forecast for oil demand this year for the second straight month as it attempts to balance the market in the face of falling prices. The cartel said oil demand would grow by just 2.03m barrels per day in 2024, down from the 2.11m b/d forecast given in August.

OPEC said the "minor adjustment" was a result of weaker-than-expected demand from China, which accounted for nearly all of this month's downgrade.

OECD oil demand is expected to grow by around 0.1m b/d in 2024, with growth coming entirely from the OECD Americas, while non-OECD oil demand is tipped to grow by 1.9m b/d.

The overall forecast for world oil demand growth in 2025 was also slightly revised down to 1.74m b/d, from 1.78m b/d previously.

The Organization's Monthly Oil Market Report said that demand was still well above the historical average of 1.4m b/d seen prior to the pandemic.

Brent crude was trading 3% lower at $69.67 a barrel on Tuesday afternoon, trading at levels not seen since early 2021, having taken a sharp dive over the past month.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new portfolio or transferring your portfolio from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.