The OPEC forecasts slower global crude oil demand growth for 2024 and 2025 than previously expected.
According to the report, the global average daily demand for oil is expected to increase by about 1.9 million barrels to a total of 104.1 million barrels this year. This is an adjustment from the previously expected more than two million barrels. The projected growth for the year 2025 has been reduced from 1.7 to 1.6 million barrels. These adjustments reflect the changed economic conditions and indicate a more cautious assessment of demand development.
The OPEC, Dominated by Saudi Arabia, and Other Oil Exporters Around Russia are Trying to Limit Supply and Support Oil Prices Through Set Production Quotas.
The decline in oil production in major producing countries comes at a time when the global economy is facing uncertainties. Weak demand from China, the world's largest oil consumer, significantly contributes to the cautious forecasts by OPEC. At the same time, geopolitical tensions and economic uncertainties complicate stable demand development.
These developments underscore the challenges faced by OPEC in maintaining its market position and ensuring the stability of oil prices. The combination of lowered demand forecasts and production cuts illustrates the complex interplay between global economic development and geopolitical factors.
