Oil is increasingly becoming a phase-out model: the Organization of the Petroleum Exporting Countries (OPEC) has lowered its oil demand expansion forecasts for this year and 2025 for the third month in a row.
The increase in global oil demand this year will average 106,000 barrels (159 liters) less per day than previously expected and will average 1.9 million barrels, according to the current monthly report. For 2025, OPEC lowered its demand growth forecast by 102,000 to 1.6 million barrels per day.
Prediction lowered three times in a row
With the three consecutive downgrades, OPEC deviates from its previous, relatively confident forecasts for demand growth. Even after the cuts, their predictions remain an outlier. Major US banks and the International Energy Agency expect demand to grow significantly lower.
This is burdened by the weakening global economy. Chinese growth has been lagging behind expectations for some time. But the economic recovery is also not getting off the ground in the eurozone. A weaker economy also uses less crude oil.
Prices calculated internationally
The oil association OPEC+ has announced a gradual withdrawal of production cuts for December. Given the weak demand development, the measure originally planned for October was postponed. However, some experts doubt that OPEC will actually increase production again.
In addition to the weakening Chinese economy, the large supply from the US also puts pressure on prices. The conflict in the Middle East has provided some support to prices recently. However, from the point of view of many OPEC countries, the current price level is too low.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
