OPEC Cuts Oil Demand Growth Forecast for Third Month

OPEC trimmed its forecast for oil demand growth for the third month in a row on Thursday, citing weaker-than-expected data in the Asia Pacific region as well as advanced economies in the Americas.

The move is likely to add to growing pressure on the Middle East-dominated group to impose a deeper round of production cuts at its December meeting, CNBC reported.

In a closely-watched monthly report, OPEC cut its forecast for global oil demand growth for the remainder of this year to 0.98 million barrels per day. That is down 40,000 bpd from its September estimate.

The group, which consists of some of the world’s most powerful oil-producing nations, kept its forecast for 2020 in line with last month’s projections. It expects world oil demand to grow by 1.08 million bpd next year.

The report comes as the US-China trade war continues to cloud prospects for the global economy and fuel demand.

In an attempt to stabilize oil prices, OPEC and allied producers — including Russia — agreed to reduce output by 1.2 million bpd at the beginning of 2019. That deal replaced a previous round of production cuts that began in January 2017.

The group sometimes referred to as OPEC+ reaffirmed their commitment to cutting production in July, extending output cuts to March 2020.

OPEC and non-OPEC producers will hold their next meeting in Vienna, Austria in early December.

source: Financial Tribune