Crude oil futures experienced a decline on Tuesday morning after the Organization of Petroleum Exporting Countries (OPEC) released its latest monthly oil market report, indicating a reduced demand forecast for 2024.
As of 9:45 AM, October Brent crude oil futures were priced at $81.69 per barrel, marking a 0.74% drop. Similarly, September West Texas Intermediate (WTI) crude oil futures were trading at $79.52 per barrel, down 0.67%.
In early trading on the Multi Commodity Exchange (MCX), August crude oil futures were priced at ₹6,679, up 0.26% from the previous close of ₹6,662. Conversely, September futures were at ₹6,549, a slight decrease of 0.09% from the prior close of ₹6,555.
OPEC’s report revised the world oil demand growth forecast for 2024 downward by 135,000 barrels per day, bringing it to 2.1 million barrels per day. This forecast remains above the pre-pandemic historical average of 1.4 million barrels per day. The adjustment reflects updated data for the first and, in some cases, the second quarter of 2024, along with a softened outlook for China’s oil demand growth.
Regionally, the OECD is expected to grow by approximately 0.2 million barrels per day year-on-year in 2024. This growth is anticipated to be entirely driven by OECD Americas, as OECD Europe and Asia-Pacific are projected to experience contractions. In contrast, non-OECD oil demand is forecasted to increase by around 1.9 million barrels per day, led by China and supported by India, West Asia, and Latin America.
The report also highlighted that the global oil demand growth forecast remains subject to various uncertainties, including global economic conditions.
Looking ahead to 2025, global oil demand is expected to grow by 1.8 million barrels per day year-on-year, slightly revised down from last month’s forecast. The OECD is projected to see a modest increase of 0.1 million barrels per day, while non-OECD demand is anticipated to expand by 1.7 million barrels per day.
In related trading, August natural gas futures on the MCX were priced at ₹182.20, down 0.82% from the previous close of ₹183.70.
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