Opec has lowered its oil demand growth forecast for 2024 and 2025 for the second consecutive month amid signs of slowing consumption in major economies.
Global oil demand growth forecast for this year is now predicted to reach 2 million barrels per day, down 80,000 bpd from the group’s previous estimate, Opec said in its monthly oil market report on Tuesday.
The revision in numbers mainly reflects the latest data, Opec said, noting that the growth of 2 million bpd remains “well above” the historical average of 1.4 million bpd before the Covid-19 pandemic.
Opec expects oil demand in OECD (Organisation for Economic Co-operation and Development) countries to grow by 0.1 million bpd in 2024, down from its previous estimate of a 0.2 million bpd increase.
Meanwhile, oil consumption in non-OECD nations is projected to grow by more than 1.8 million bpd this year, which is lower than Opec's earlier forecast of about 1.9 million bpd.
The producer alliance also lowered its forecast for 2025 crude demand growth to 1.74 million bpd, down from 1.78 million bpd.
The forecast cut comes as China, the world’s second-largest economy and top crude importer, faces challenges from a real estate crisis, sluggish consumer spending and a slowdown in manufacturing.
The country’s second-quarter GDP growth slowed to 4.7 per cent on an annual basis, from 5.3 per cent in the first quarter.
“Looking ahead, China’s economic growth is expected to remain well supported,” Opec said.
“However, headwinds in the real estate sector and the increasing penetration of [liquefied natural gas] trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward.”
Last week, the Opec alliance extended voluntary oil output cuts of 2.2 million bpd until the end of November amid a drop in crude prices over concerns of slumping demand.
Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman will pause the scheduled increases of 180,000 bpd in October and November, Opec said at the time.
The group also said further extensions and renewed cuts were on the table, should market conditions demand them.
Production by Opec’s 12 members averaged 26.59 million bpd last month, 197,000 bpd lower than in July, the group said on Tuesday.
Crude oil output increased mainly in Nigeria, Republic of Congo and Venezuela, while production in Libya, Iraq and Saudi Arabia decreased.
Libya is currently in the midst of a political crisis that has caused its production to more than halve.
Oil prices fell on Tuesday as the threat of a supply disruption in the US from a tropical storm was overshadowed by concerns about weakening oil demand.
Brent, the benchmark for two thirds of the world’s oil, was trading 1.32 per cent lower at $70.89 a barrel at 4.25pm UAE time, while West Texas Intermediate, the gauge that tracks US crude, was down 1.38 per cent at $67.76 a barrel.
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
What is double taxation?
- Americans living abroad file taxes with the Internal Revenue Service, which can cost hundreds of dollars to complete even though about 60 per cent do not owe taxes, according to the Taxpayer Advocate Service
- Those obligations apply to millions of Americans residing overseas – estimates range from 3.9 million to 5.5 million – including so-called "accidental Americans" who are unaware they hold dual citizenship
- The double taxation policy has been a contentious issue for decades, with many overseas Americans feeling that it punishes them for pursuing opportunities abroad
- Unlike most countries, the US follows a citizenship-based taxation system, meaning that Americans must file taxes annually, even if they do not earn any income in the US.
Sanju
Produced: Vidhu Vinod Chopra, Rajkumar Hirani
Director: Rajkumar Hirani
Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani
Rating: 3.5 stars
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
