OPEC Leaves Forecast for 2024 Oil-Demand Growth Unchanged

The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2024 and said 2025 will see a robust increase in oil use, led by China and the Middle East.

OPEC, in a monthly report, said world oil demand will rise by 1.85 million barrels per day in 2025. For 2024, OPEC saw demand growth of 2.25 million bpd, unchanged from last month.

What Does 2024 Hold For China’s Economy And Oil Demand?

China’s stellar economic growth for many years pushed the prices of the major commodities it needed ever higher, almost single-handedly creating and sustaining the commodities supercycle over those years.
China’s economic growth target for 2023 was officially “around 5%”, which meant that it was almost certainly going to be attained on paper, regardless of the reality behind the figures.
One obvious sector of concern – among many others that are less so – is the property sector, which accounts for around a third of China’s entire GDP and about 65 percent of total household assets.

Oil Demand Will Take a Hit from Yet Another Decline in U.S. Manufacturing

U.S. manufacturing activity has declined for the 13th consecutive month.
Surprisingly, diesel demand has not followed a similar trajectory as the manufacturing sector.
With experts predicting that the manufacturing downturn may be drawing to a close, it will be interesting to see how the energy markets respond with diesel stocks already severely depleted.