By Alex Lawler
LONDON (Multibagger) - OPEC has made significant downward revisions to its forecast for global oil demand growth in the coming years. In its latest monthly report, the producer group predicted a rise of 2.03 million barrels per day (bpd) in 2024, down from the previous estimate of 2.11 million bpd. This marks OPEC's second consecutive downward revision.
The forecast for 2025 also saw a reduction, with global demand growth estimated at 1.74 million bpd, down from 1.78 million bpd.
One of the key factors contributing to the uncertainty in demand growth projections is the varying opinions on China's economic performance and the global shift towards cleaner energy sources. OPEC remains optimistic about China's economic growth but acknowledges challenges in the real estate sector and the increasing adoption of LNG trucks and electric vehicles, which could impact diesel and gasoline demand.
Despite the downward revisions, OPEC's forecasts are still on the higher end compared to other industry estimates.
Analysis:
These revisions by OPEC highlight the ongoing uncertainty in global oil demand growth and the challenges posed by the transition to cleaner energy sources. Investors and financial markets should closely monitor these developments as they can have significant implications for oil prices, energy investments, and overall market sentiment. Understanding the factors influencing oil demand can help individuals make informed decisions about their investments and financial plans.