OPEC on Monday reduced its forecast for global oil demand growth in 2024, citing weaker-than-expected demand from China. This marks the first cut in OPEC’s 2024 forecast since July 2023 and highlights challenges for the OPEC+ group as they consider raising production from October.
The Organization of the Petroleum Exporting Countries now expects world oil demand to grow by 2.11 million barrels per day (bpd) in 2024, down from 2.25 million bpd predicted last month. This revision reflects lower-than-expected Chinese demand due to reduced diesel consumption and economic challenges in the property sector.
Despite these adjustments, OPEC’s demand growth forecast remains higher than industry averages. The group’s July production rose slightly to 40.9 million bpd, driven by Saudi Arabia.
As OPEC+ deliberates on unwinding output cuts, the International Energy Agency (IEA) is expected to release its updated, more conservative demand forecast soon.