OPEC revised downward its growth forecasts for global oil demand in 2024, marking the third consecutive reduction for the producing group.
He oil price sinks up 2.4% this Monday, October 14, after economic data showed that the China’s inflation rate decreasedas well as The lack of clarity about the country’s economic stimulus plans influencedwhich stoked fears about fuel demand in the world’s largest crude oil importer.
In that context, the OPEC revised downwards its growth forecasts for global oil demand in 2024, marking the third consecutive reduction for the producing group. In addition, it announced that an increase in demand of 1.93 million barrels per day (bpd) is expected by 2025, a figure lower than the projection of 2.03 million bpd made in the previous month.
The Brent crude oil futures fall 23% to US$77.26 per barrel. Meanwhile, the US West Texas Intermediate (WTI) futures they go down 2.4% to US$73.75.
Lower oil demand forecasts for 2024 and 2025: China’s role
The adjustment of oil demand forecasts It is largely due to expectations about demand in China, where OPEC reduced its growth estimate from 650,000 bpd to 580,000 bpd.. Although the Chinese government’s stimulus measures could boost demand in the fourth quarter, factors such as the economic slowdown and the transition to cleaner energy sources are raising concerns.
The negative news from China outweighed market concerns about the lingering possibility that an Israeli response to Iran’s Oct. 1 missile attack could disrupt the oil productionalthough the United States warned Israel not to attack Iranian energy infrastructure.
China’s deflationary pressures worsened in Septemberaccording to official data published on Saturday, and a press conference held on the same day left investors wondering about the overall magnitude of a stimulus package to revive the fortunes of the world’s second largest economy.
“China’s consumer price index reading indicates a sustained deflationary trend and weaker domestic consumption despite the authorities’ announcement of more aggressive monetary stimulus in September,” he said Priyanka Sachdevaanalyst at Phillip Nova, in a note on Monday.
The consumer price index fell short of expectations and the producer price index fell at the fastest pace in six months, a 2.8% year-on-yearaccording to the China National Bureau of Statistics.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
