Oil Prices Fall after OPEC Bearish Expectations
Oil prices declined in the global commodity market on Tuesday over demand concerns China’s following Beijing’s unimpressive economic data.
Brent crude fell by 0.95%, to $81.52 a barrel while West Texas Intermediate crude slipped to $79.33 a barrel, representing a 0.91% decline over the day. Brent had gained 3.6% on Monday, while U.S. crude futures had risen more than 4%.
The Organization of the Petroleum Exporting Countries (OPEC) global demand forecast reduction for 2024 highlighted the dilemma faced by the wider OPEC+ group in raising production from October.
The cut to OPEC’s 2024 forecast was the first since it was made in July 2023 and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption and as a crisis in the property sector hampers the world’s second-largest economy.
Global oil demand growth forecast for 2024 is revised down by 135,000 bpd, from the previous month’s assessment.
Total world oil demand is anticipated to reach 104.3 million bpd in 2024, bolstered by actual data received for the first and in some cases second quarter of this year, as well as softening expectations for China’s oil demand growth this year.
Demand in OECD countries will increase by 160,000 bpd this year to 45.81 million bpd. In non-OECD countries, demand is expected to rise by 1.95 million bpd this year to 58.51 million bpd.
Petrochemical feedstock requirements for liquefied petroleum gas and healthy driving mobility requirements for gasoline are also predicted to contribute to this rise.
Global demand is expected to reach 106.11 million bpd with an increase of 1.78 million bpd in 2025. This increase was 60,000 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 1.68 million bpd in non-OECD countries.
Nigeria’s crude oil production now 1.3mbpd: OPEC
Nigeria’s average daily crude oil production increased marginally to 1.307 million barrels per day in July, according to the Organisation of the Petroleum Exporting Countries (OPEC) monthly oil report. The oil group said Nigeria added an average of 30 barrels per day to increase its oil output from 1.27mbpd in June to 1.30mbpd in July.
Crude oil output rose mainly in Saudi Arabia, while production experienced the biggest fall in Libya. Production in Saudi Arabia, the group’s largest producer, increased by 97,000 bpd, whereas output fell by 19,000 bpd in Libya. #Oil Prices Fall after OPEC Bearish Expectations
