The Globe and Mail reports in its Wednesday edition that the Organization of the Petroleum Exporting Countries has reduced its oil demand expectation for next year. A Reuters dispatch to The Globe reports that the organization, which includes OPEC and allies such as Russia, faces challenges in balancing the market. OPEC+ has postponed increasing oil production after prices hit a 2024 low. According to OPEC's monthly report released on Tuesday, global oil demand is expected to grow by 2.03 million barrels per day in 2024, down from the previous estimate of 2.11 million barrels per day. This revision comes after OPEC maintained the same forecast since its initial projection in July, 2023. China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 b/d in 2024 from 700,000 b/d. Oil use in the world's second-largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said. There is a wide split in 2024 demand growth forecasts owing to differences over China and the pace of the world's transition to cleaner fuels. OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.
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