OPEC Slashes Global Demand Forecast as Daily Output Falls

The Organisation of Petroleum Exporting Countries (OPEC) has forecasted a slowdown in global demand for crude oil as the group reported a 2.1% decline in its own output for Sept. 2024.

In its monthly report, the oil group revealed that output decreased by 2.1%, or by 604,000 barrels per day (bpd), in September to average 26.04 million bpd, according to OPEC’s monthly oil market report released on Monday.

Crude oil output rose mainly in Iran, while production experienced the biggest fall in Libya. Production in Iran increased by 21,000 bpd, whereas output fell by 410,000 bpd in Libya.

In the same period, production in Saudi Arabia, the group’s largest producer, decreased by 23,000 to 8.97 million bpd. Last month, total daily crude oil production of the OPEC+ group, which consists of OPEC and some non-OPEC producing countries, fell by 557,000 bpd to 40.10 million bpd.

Meanwhile, global oil demand growth forecast for 2024 is revised down by 106,000 bpd, from the previous month’s assessment.

Total world oil demand is anticipated to increase 1.93 million bpd to reach 104.14 million bpd in 2024 bolstered by strong air travel demand and road mobility, including trucking, as well as healthy industrial, construction and agricultural activities primarily in non-OECD countries.

Refinery capacity additions in non-OECD countries, mostly in China and the Middle East, are also expected to contribute to oil demand growth. In the report it is also stated that demand in OECD countries will increase by 130,000 bpd this year to 45.78 million bpd. In non-OECD countries, demand is expected to rise by 1.80 million bpd this year to 58.36 million bpd.

Moreover, global demand is expected to reach 105.78 million bpd with an increase of 1.64 million bpd in 2025. This increase was 100,000 bpd below the demand growth forecasted by OPEC in the previous report.

In this period, demand is expected to increase by 110,000 bpd in OECD countries and by 1.54 million bpd in non-OECD countries. #OPEC Slashes Global Demand Forecast as Daily Output Falls