OPEC has revised its forecasts for oil demand growth downwards.

OPEC has lowered its forecast for global oil demand growth in 2024 and 2025

The Organization of the Petroleum Exporting Countries (OPEC) has published its forecast for global oil demand growth in the coming years. The forecast has been reduced, with a particular focus on China, India, and other regions. This is the fourth downward revision of the forecast in a row.

This change in forecast presents difficult challenges for OPEC+ (OPEC and its allies, including Russia). Recently, Russia postponed its plans to increase oil production due to falling prices.

According to the OPEC report, global oil demand will increase by 1.82 million barrels per day in 2024, which is lower than the previous forecast of 1.93 million barrels per day presented in October.

Additionally, OPEC has reduced its forecast for global oil demand growth in 2025 to 1.54 million barrels per day, instead of 1.64 million barrels per day.

The main reduction in oil demand is expected in China in 2024, so OPEC has also lowered its production forecast for China. Instead of 580,000 barrels per day, production is now expected to be at 450,000 barrels per day. Moreover, the use of diesel fuel has significantly decreased in China over the past months.

Oil prices began to fall after the report was published. Currently, Brent crude oil is trading below $73 per barrel.