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Uncertainties over China’s economy are slightly hampering growth in oil demand in 2024, according to OPEC’s monthly report, which revised its previous forecast published in July slightly.
However, the OPEC noted that demand growth remains very strong.
“The global oil demand growth forecast for 2024 has been revised down slightly by 135,000 barrels per day” from last month, to 2.1 million barrels per day, “well above the historical average of 1.4 million barrels per day (mbpd) observed before the Covid-19 crisis,” the report, published on Monday, said.
The main reason, according to OPEC, is the decline in expectations for Chinese oil demand, due to the “slight slowdown” in Chinese growth observed in the second quarter of 2024, after growth of 5.3% in the first quarter compared to the same period last year.
These concerns about the Chinese economy “contributed to downward pressure on prices,” according to OPEC, which notes that “between May and July, oil prices fell.”
For 2024, OPEC expects demand to reach 104.32 million barrels per day and 106.11 million barrels per day for 2025, representing an increase of 1.8 million barrels per day, driven mainly by non-OECD countries.
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Grace Montgomery writes for News Collective, covering news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on clear, reliable reporting and useful information, helping readers stay informed about current events, emerging trends, and stories that matter.