Oil futures dropped on Tuesday morning after OPEC revised its 2024 demand growth forecast. According to OPEC’s latest monthly oil market report, the expected increase in global oil demand for next year has been slightly reduced by 135,000 barrels per day. The new forecast stands at 2.1 million barrels per day, down from the previous estimate but still above the pre-pandemic average of 1.4 million barrels per day.
As of 9:45 AM on Tuesday, October Brent crude oil futures were trading at $81.69, marking a decrease of 0.74%. Meanwhile, September West Texas Intermediate (WTI) futures were at $79.52, down by 0.67%.
In India, August crude oil futures on the Multi Commodity Exchange (MCX) were at ₹6,679, up by 0.26% from the previous close of ₹6,662. September futures were at ₹6,549, down by 0.09% from the prior close of ₹6,555.
The OPEC report attributed the downward revision to updated data from early 2024 and weakened expectations for China’s oil demand growth. For 2024, oil demand in OECD countries is expected to grow by about 0.2 million barrels per day, entirely driven by OECD Americas, as Europe and Asia-Pacific are forecasted to experience declines. Non-OECD demand is projected to rise by approximately 1.9 million barrels per day, led by China, supported by India, West Asia, and Latin America.
Looking ahead to 2025, OPEC forecasts global oil demand to grow by 1.8 million barrels per day, a slight decrease from last month’s estimate. The OECD is expected to see a modest increase of 0.1 million barrels per day, while non-OECD demand is projected to expand by 1.7 million barrels per day.
Additionally, August natural gas futures on MCX were trading at ₹182.20, down 0.82% from the previous close of ₹183.70.