The Organization of the Petroleum Exporting Countries (OPEC)’s September oil report has seen the oil body push down its forecast for global oil demand growth, based on this year's data.
This marks the group's second consecutive downward revision.
The reduced outlook emphasises the ongoing challenge faced by the broader OPEC+ grouping, which includes allies such as Russia, in balancing the market.
OPEC+ recently delayed a plan to increase oil production after prices reached their lowest point in 2024.
Given the current economic growth trend, the report forecasts oil demand growth in 2024 at two million barrels per day (mbbl/d) year-on-year, with 2025’s figure seen at 1.7mbbl/d.
Most of the recent revisions were attributed to Chinese economic data and projections, and the country’s slow move to renewables, with OPEC reducing its prediction of Chinese oil expansion usage to 650,000 barrels per day (bpd) in 2024, from 700,000bpd.
OPEC’s June report indicated a slight increase in US crude and condensate production, while natural gas liquids (NGLs) production remained stable.
The report stated that despite some potential downsides, the positive growth in non-Organisation for Economic Co-operation and Development (OECD) economies since early 2024 could lead to continued global economic growth extending into 2025.
