In its month-to-month report, the Worldwide Power Company (IEA) painted a bleak image for oil demand, Commerzbank’s Commodity Analyst Carsten Fritsch notes.
China to see a rise in demand of 180,000 bpd in 2024
“Within the first half of the 12 months, it elevated by solely 800,000 barrels per day in comparison with the earlier 12 months. That is solely one-third of the rise within the earlier 12 months. For the 12 months as an entire, the IEA expects demand to develop by 900,000 barrels per day. In July, demand for oil in China was down year-on-year for the fourth consecutive month.”
“The IEA now expects China to see a rise in demand of 180,000 barrels per day in 2024. The expansion engine China has thus turn out to be a drag on progress. For subsequent 12 months, the IEA expects solely a slight acceleration. World oil demand is predicted to extend by 950 thousand barrels per day, with demand in China rising by 260 thousand barrels per day. Because of this international demand progress would lag behind the IEA’s anticipated improve in non-OPEC oil provide.”
“Consequently, the decision on OPEC oil will fall to a median of 26.2 million barrels per day subsequent 12 months. That could be a good 1 million barrels per day lower than OPEC’s present manufacturing. OPEC would due to this fact even have to cut back provide subsequent 12 months to keep away from a surplus. The gradual improve in manufacturing that has been deliberate to this point would end in a substantial oversupply.”
&w=150&resize=150,150&ssl=1 "Gold costs climb Rs 10 to Rs 74,460, silver jumps Rs 100 to Rs 89,600")
