The IEA has slashed its expectations for global oil demand for the current quarter by 600,000 b/d and warns of a “further weakening of the macroeconomic climate” curtailing oil demand growth in 2024. The US EIA also cut its oil demand forecasts this week, downgrading its 2024 oil price forecasts by $11/B amid an increasingly bearish narrative.
In stark contrast to this, Opec, which also released its monthly market report this week, kept its demand outlook unchanged. And Opec is doubling down on its bullish outlook, warning that recent price drops have been “fueled by exaggerated concerns about oil demand growth, which negatively impacted market sentiment.” This official position appears to stand at odds with the group’s actions, with leading producers last month signing up to deeper voluntary cuts from January in a bid to prevent Q1 inventory builds (MEES, 1 December). (CONTINUED - 1014 WORDS)
