OPEC on Monday cut its forecasts for global oil demand
growth in 2024. Marking the group's first reduction to
the 2024 forecast since it was made over a year
ago. That's following weaker than expected numbers for the
first half of the year and softer expectations for oil
demand growth in China specifically alongside this OPEC also trimmed
its expectations for next year. The group of leading
oil producers in a monthly report said world oil demand
will rise by around 2.1 million barrels per day.
That's down from growth of 2.25 million barrels per day
expected last month. The report said that despite a
slow start to the summer driving season, transport,
fuel demand is expected to remain solid. There's a
wider than usual split between forecasters on the strength of
oil demand growth in 2024. That's due to differences
over China and more broadly over the pace of the
world's transition to cleaner fuels. The reduction still leaves
at the top end of industry estimates in the report
. OPEC also cuts next year's demand growth estimates to
1.78 million barrels per day from a previously expected 1.85
million which includes OPEC allies such as Russia has implemented
a series of output cuts since late 2022 to support
the market. The group agreed in June to gradually
phase out the production cut of 2.2 million barrels per
day. From October, the International Energy Agency which
represents industrialized countries sees much lower demand growth than OPEC
of 970,000 barrels per day in 2024.