Crude oil futures traded lower on Tuesday morning after OPEC’s (Organization of Petroleum Exporting Countries) monthly oil market report indicated a decline in demand for the commodity in 2024.
At 9.45 am on Tuesday, October Brent oil futures were at $81.69, down by 0.74 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $79.52, down by 0.67 per cent.
August crude oil futures were trading at ₹6,679 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday, against the previous close of ₹6,662, up by 0.26 per cent, and September futures were trading at ₹6,549, against the previous close of ₹6,555, down by 0.09 per cent.
The OPEC monthly oil market report said the world oil demand growth forecast for 2024 is revised down slightly by 135,000 barrels a day from the previous month’s assessment. This now stands at 2.1 million barrels a day, well above the historical average of 1.4 million barrels a day seen prior to the pandemic.
The report said that this slight revision reflects actual data received for the first quarter of 2024, and in some cases the second quarter of 2024, as well as softening expectations for China’s oil demand growth in 2024.
In terms of regions, the OECD is projected to expand by around 0.2 million barrels a day, year-on-year, in 2024. OECD Americas is expected to account for all of this growth, as OECD Europe and Asia-Pacific are projected to show a contraction.
In the non-OECD, oil demand is forecast to increase by around 1.9 million barrels a day, year-on-year, driven by China, with support from India, West Asia and Latin America.
The report said the global growth forecast is subject to many uncertainties, including global economic developments.
For 2025, global oil demand growth is forecast at a robust 1.8 million barrels a day, year-on-year, revised down slightly from the previous month’s assessment. The OECD is expected to grow by 0.1 million barrels a day, year-on-year, while demand in the non-OECD is forecast to expand by 1.7 million barrels a day, it said.
August natural gas futures were trading at ₹182.20 on MCX during the initial hour of trading on Tuesday, against the previous close of ₹183.70, down by 0.82 per cent.