You are visiting the website that is operated by Ultima Markets Ltd, a licensed investment firm by the Financial Services Commission “FSC” of Mauritius, under license number GB 23201593. Please be advised that Ultima Markets Ltd does not have legal entities in the European Union.
If you wish to open an account in an EU investment firm and protected by EU laws, you will be redirected to Ultima Markets Cyprus Ltd (the “CIF”), a Cyprus investment firm duly licensed and regulated by the Cyprus Securities and Exchange Commission with license number 426/23.
On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) announced in its monthly report that global oil demand is projected to rise by 2.03 million barrels per day (bpd) in 2024, a slight decrease from the previous month’s forecast of 2.11 million bpd. However, until last month, OPEC was still maintaining the same forecast since it was initially issued in July 2023. As a result, U.S. crude oil prices dropped 3.67%, closing at $66.24.
(US Crude Oil Daily Price Chart, Source: Trading View)
Meanwhile, the U.S. Energy Information Administration (EIA) reported on the same day that global oil demand is expected to hit a new record this year, while output growth will fall short of earlier projections. The EIA estimates that global oil demand will be average around 103.1 million bpd this year, which is an increase of 200,000 bpd from its prior forecast of 102.9 million bpd. Despite this upward revision, oil prices remained under pressure after the EIA release which is driven by the ongoing concerns about China’s economic slowdown.
OPEC and its allies had originally planned to increase output in October. However, with the crude prices sliding amid a sluggish global economy, they decided last week to postpone the output increase until December. Although rising concerns about economic growth and oil demand—particularly in China—have put downward pressure on prices, OPEC+ production cuts mean global oil supply remains below consumption levels.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.