- Oil gives up most of its gains from last week
- WTI is trading near $86/Bbl amid concerns about weaker demand
- China, the largest oil importer in the world, is still facing uncertain crude demand
- China reported weaker-than-expected economic data for October, indicating reduced service and factory activity as the nation focuses on strict COVID-zero curbs
- Official manufacturing purchasing managers' index declined from 50.1 to 49.2 in October, while non-manufacturing dipped from 50.6 to 48.7
- Meanwhile, the U.S. Fed’s next rate announcement is expected this week
- OPEC raised its forecasts for the medium- and long-term growth of the global oil demand in an annual outlook released on Monday (WSJ, Reuters)
- Global oil demand will increase by 2.7 MMBbl/d from 2022 to 2023, according to the report, reaching 103 MMBbl/d. The forecast for 2023 shows an increase in total demand of 1.4 MMBbl/d
- The cartel also expects that demand would grow by about 9 MMBbl/d by 2025, reaching 105.5 MMBbl/d
- By 2030, OPEC sees world demand averaging 108.3 MMBbl/d, up from 2021, and lifted its 2045 figure to 109.8 MMBbl/d from 108.2 MMBbl/d in 2021
- The bloc added that despite the energy transition, $12.1 trillion in investments will be required to meet this demand by 2045
- The report also mentions that supply constraint is anticipated to continue in the medium term, with OPEC output falling in 2027 while non-OPEC supply increases