Oil prices edge up slightly amid OPEC demand cut forecast
Oil prices on the New York fuel exchange are slightly rising, but they remain close to this month's lowest levels. Brokers say investors are focused on the fuel demand outlook after OPEC countries lowered their oil demand growth forecasts for this and next year.
A barrel of West Texas Intermediate oil for December delivery costs $68.23 on NYMEX in New York, up by 0.16 percent.
Brent oil on ICE for December is priced at $72.02 per barrel, following an increase of 0.18 percent.
Oil prices in the US near lowest levels
Investors are focused on the fuel demand outlook after OPEC countries lowered their oil demand growth forecasts for this year and 2025 on Tuesday, marking the fourth consecutive reduction. This adjustment points to a slowdown in the Chinese economy, the world's largest oil importer.
OPEC stated in its monthly report that world oil consumption will increase by 1.8 million barrels per day in 2024. This figure is 107 thousand b/d less than previously projected in the cartel's report.
According to OPEC estimates, daily oil demand is expected to increase by 1.5 million barrels per day in 2025, which is 103 thousand b/d less than the cartel's previous forecast.
The cartel estimates that world oil consumption will average 104 million barrels per day this year.
However, OPEC points to weaker fuel demand in Asian countries, including China and India, as well as in Africa.
Since July, OPEC has already reduced its forecasts for world oil demand for this year by almost 20 percent.
However, OPEC's forecasts are more optimistic than those of other institutions, such as Wall Street banks and brokerage houses.
The world watches China
Meanwhile, Brent oil contract prices have fallen by about 18 percent since early July, as investors grow increasingly uncertain that the ongoing conflict in the Middle East, which has persisted for over a year, will not disrupt oil supplies from the region.
The uncertain situation in the Chinese economy, where fuel demand has been falling for several consecutive months, remains a focus for market players. The country's authorities face numerous serious challenges to "revive the economy."
"The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, coupled with the prospects of higher US oil production with a Trump presidency and looming OPEC+'s plans for an output raise," said Jun Rong Yeap, market strategist at IG Asia Pte.
