The Organisation of Petroleum Exporting Countries said on Monday said the uncertainty about Chinese economic growth is weighing on global oil demand this year.
It added that the uncertainty may lead the producers cartel to slightly revise down the robust projections it made in July.
OPEC said these in its Monthly Oil Market Report released on Monday.
“The world oil demand growth forecast for 2024 is revised down slightly by 135,00 barrels a day from the previous month’s assessment,” the Organisation of Petroleum Exporting Countries said in a report released Monday.
The Report said the slight revision reflects actual data received for the first quarter of 2024 as well as softening expectations for China’s oil demand growth in 2024. Within the main regions, the Report added that OECD oil demand is expected to grow by around 0.2 mb/d in 2024, while non-OECD oil demand is expected to increase by around 1.9 mb/d.
The Report said, “The world oil demand growth forecast for 2024 is revised down slightly by 135 tb/d from the previous month’s assessment. It now stands at a healthy 2.1 mb/d, well above the historical average of 1.4 mb/d seen prior to the COVID-19 pandemic.
“This slight revision reflects actual data received for 1Q24 and in some cases 2Q24, as well as softening expectations for China’s oil demand growth in 2024. Within the main regions, OECD oil demand is expected to grow by around 0.2 mb/d in 2024, while non-OECD oil demand is expected to increase by around 1.9 mb/d. In 2025, world oil demand is also revised slightly down by 65 tb/d, reaching about 1.8 mb/d.
“OECD demand is expected to expand by about 0.1 mb/d in 2025, with OECD Americas contributing the largest increase. Non-OECD demand is set to drive next year’s growth, increasing by about 1.7 mb/d, led by contributions from China, the Middle East, Other Asia, and India.”
It added that Crude oil production by the countries participating in the DoC increased in July compared with the previous month, averaging about 40.91 mb/d, as reported by available secondary sources