Slowing China Economy has OPEC Spooked, But Only a Little

OPEC, spooked just a bit by China’s slowing economic growth, cut its forecast for 2024 global crude oil demand slightly in its latest monthly Oil Market Report. As other forecasters like the International Energy Agency (IEA) and U.S. Energy Information Administration (EIA) have revised their annual forecasts higher or lower on almost a monthly basis, OPEC has previously held firm on its initial forecast of a 2.25 million barrels per day (bpd) rise in crude demand since it was initially published in July 2023.

In its August report, however, the cartel revises that number slightly downwards to growth of 2.1 million bpd, saying the “slight revision reflects actual data received for 1Q24 and in some cases 2Q24, as well as softening expectations for China’s oil demand growth in 2024.”