Alex Lawler, Dmitry Zhdannikov, and Shariq Khan of Reuters report that global oil demand needs to rise faster to absorb increased production plans by OPEC+. They write:
Global oil demand growth needs to accelerate in coming months or the market will struggle to absorb an increase in oil supply that OPEC+ is planning to make from October, according to data, analysts and industry sources.
Oil demand growth in the first seven months of the year from top consumers the United States and China had failed to meet some expectations even before renewed fears of a U.S. recession triggered a global stock and bond sell-off this week.
If the economy slows further, oil demand growth will likely slow with it. That will mean OPEC+ would either have to delay plans to pump more oil or accept lower prices for higher supply, analysts said. […]
Dour economic data from the United States could also spell trouble for oil markets, especially for diesel. U.S. diesel demand was about 4% lower in the first five months of this year than in 2023, according to EIA data.
