The Organization of the Petroleum Exporting Countries (OPEC) last week cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also lowered its projection for next year, marking the producer group's third consecutive downward revision.
The Vienna-based group now expects demand to grow by 1.93 million barrels a day this year and 1.64 million barrels a day in 2025, from 2.03 million and 1.74 million barrels a day, previously.
There is a wide split between forecasters on the strength of demand growth in 2024, partly due to differences over demand from China and over the pace of the world's switch to cleaner fuels. OPEC is still at the top end of industry estimates after the revision.
China accounted for the bulk of the 2024 downgrade as OPEC trimmed its Chinese growth forecast to 580,000 bpd from 650,000 bpd. While government stimulus measures will support fourth-quarter demand, oil use is facing headwinds from economic challenges and moves towards cleaner fuels, OPEC said.
"Diesel consumption continued to be subdued by slowing economic activity, mostly a slowdown in building and housing construction, and the substitution of liquefied natural gas (LNG) for petroleum diesel fuel in heavy-duty trucks," OPEC said in reference to August.
