OPEC says Chinese economy pulling down oil demand

Uncertainty about Chinese economic growth is weighing on global oil demand this year, OPEC said on Monday, leading the producers cartel to slightly revise down the robust projections it made in July.

“The world oil demand growth forecast for 2024 is revised down slightly by 135,00 barrels a day from the previous month’s assessment,” the Organisation of Petroleum Exporting Countries said in a report released Monday.

“It now stands at a healthy 2.1 million barrels a day, well above the historical average of 1.4 million seen prior to the COVID-19 pandemic.”

It said the main reason for the revision was “softening expectations for China’s oil demand growth in 2024”.

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It noted that oil prices rose between January and May before slipping from May onwards.

OPEC blamed the declining prices on “concerns about China’s economic performance” as well “as easing geopolitical risk premiums and mixed economic indicators.”