OPEC trims oil demand forecast again as crude prices sink

The Organization of the Petroleum Exporting Countries has reduced its forecast for oil demand this year for the second straight month as it attempts to balance the market in the face of falling prices.

The cartel said oil demand would grow by just 2.03m barrels per day in 2024, down from the 2.11m b/d forecast given in August.

OPEC said the "minor adjustment" was a result of weaker-than-expected demand from China, which accounted for nearly all of this month's downgrade.

OECD oil demand is expected to grow by around 0.1m b/d in 2024, with growth coming entirely from the OECD Americas, while non-OECD oil demand is tipped to grow by 1.9m b/d.

The overall forecast for world oil demand growth in 2025 was also slightly revised down to 1.74m b/d, from 1.78m b/d previously.

The Organization's Monthly Oil Market Report said that demand was still well above the historical average of 1.4m b/d seen prior to the pandemic.

Brent crude was trading 3% lower at $69.67 a barrel on Tuesday afternoon, trading at levels not seen since early 2021, having taken a sharp dive over the past month.