Crude oil prices fell 2.5% this week due to softening demand projections, a strong U.S. dollar, and rising supply expectations. Amid global economic uncertainty, reports from the U.S. Energy Information Administration (EIA), the International Energy Agency (IEA), and OPEC are collectively highlighting a bearish outlook, particularly as non-OPEC supply growth appears likely to outpace sluggish demand. Key factors remain China’s economic slowdown, dollar strength, and record-high U.S. output.
China’s Economic Challenges Weigh on Oil Demand
China’s recent stimulus efforts have not generated the anticipated lift in oil demand, increasing concerns over prolonged softness in global energy consumption. October data showed the slowest consumer price growth in four months, highlighting limited industrial activity. OPEC has adjusted its China demand growth forecast for 2024 down to 450,000 barrels per day (bpd), citing reduced diesel consumption caused by slowing manufacturing and increased LNG-fueled trucking.
China’s weak demand outlook is especially concerning given its role as the world’s largest oil importer. With OPEC now revising demand expectations downward for the fourth consecutive month, confidence in China’s recovery has diminished, impacting crude prices globally???.
Source: By Oilprice.com