For the fourth consecutive month, OPEC has cut its forecast for global oil demand growth this year by about 100,000 barrels per day, estimating in a report issued today that demand will grow by 1.8 million barrels per day, after its forecast in July was 2.2 million barrels, which means a reduction of 18.8% since the August report.
Eight OPEC+ member countries, namely Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and the Sultanate of Oman, agreed in early November to extend their additional voluntary oil production cuts of 2.2 million barrels per day for a month until the end of next December.
Oil prices stabilized at their lowest levels in two weeks, amid weak expectations for demand in China, a rise in the US dollar, and fears that the market could turn into a surplus in supply.
Brent crude for January delivery was trading above $72, up 0.7%, after falling about 3% on Monday, while WTI crude for December delivery remained near $68, also up about 0.7% on Monday. China’s recent measures to revive its economy have not amounted to direct stimulus that would affect oil demand.
