Oil prices dropped more than 2% on Monday, erasing last week’s gains due to concerns over weak demand from China. Despite the ongoing conflict in the Middle East, investors are now focusing on China’s economic performance, with the government’s new stimulus program taking center stage. However, China’s September deflation worsened, and a weekend press conference provided little clarity on the scope of its stimulus plans. West Texas Intermediate (WTI) for settlements in November fell by 2.33% at 5:35 am ET, selling for $73.80 per barrel. Brent for December deliveries slipped by 2.25% and sold for $77.24 per barrel.
OPEC revises down oil demand growth forecast
The Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report on Monday that it expects the 2024 oil demand to grow by 1.9 million barrels per day (bpd) compared to 2023, 106,000 bpd less than in its previous report. OPEC said the change was made “largely due to actual data received combined with slightly lower expectations for the oil demand performance in some regions.” It added that total world oil demand is forecast to reach 105.6 million bpd in the fourth quarter, averaging 104.1 million bpd in 2024. OPEC also revised down the 2025 global oil demand growth projection, expecting it to stand at 1.6 million bpd, compared to 1.7 million bpd previously. Demand is expected to grow by 0.1 million bpd in OECD countries and 1.5 million bpd in the non-OECD region.
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