New Delhi
Weak global oil demand is currently impacting crude oil prices, with potential supply adjustments looming to meet future demand. This situation is primarily driven by concerns over economic slowdowns in major economies like China and the United States, which have been experiencing weakening industrial production and manufacturing growth, a report said on Thursday.
According to the US Energy Information Administration (EIA), global oil demand is projected to reach approximately 104.30 million barrels per day (bpd) in 2025, up from an expected 103.10 million bpd in 2024. In October, India’s crude oil imports dropped by 10% month-on-month to 4.24 million bpd, reflecting a tightening of supply amidst these demand pressures.
The OPEC+ group, which includes major oil-producing countries like Saudi Arabia and Russia, has also decided to implement voluntary output cuts starting in December, extending over the next 12 months. These supply decisions will likely be influenced by price stability and the pace of the transition to alternative energy sources.
Interest rate cuts and other monetary policy adjustments may further bolster cautious optimism regarding economic growth and energy demand. Non-OECD countries, particularly in China and the Middle East, are also expected to expand refinery capacities, contributing to future oil demand growth.
However, the World Bank warns that while an oil surplus may limit price fluctuations, significant uncertainty and volatility could still persist in the oil markets. As of the latest data, oil prices saw a rise of over 2%, with Brent crude futures increasing by $1.41, or 2%, to $72.53 a barrel.
