Scotiabank Lowers Global Oil Demand Outlook on China Concerns

(Reuters)

• Brokerage Scotiabank lowers its global oil demand growth outlook to reflect economic troubles in China, the world’s top crude importer
• Cuts global demand growth outlook for 2024 to 910,000 barrels per day from a prior view of 1.1 million barrels per day
• Also expects 2025 global demand growth outlook at 860,000 barrels per day from the previous forecast of 1.1 million barrels per day
• However, the brokerage adds that “net global liquid demand and supply balance will not change drastically as lower Chinese demand will likely be partially offset by lower production growth in the U.S. and potentially stronger demand in India,”
• Scotiabank believes due to a change in “sentiment and investor focus”, Brent crude will now average at $70-$75 over the next several years compared to its previous assumption of $80 in 2025, $75 in 2026, $70 in 2027 and $75 in 2028
• Earlier this month, the International Energy Agency and OPEC also cut their global oil demand forecasts for 2024

Reporting by Vallari Srivastava in Bengaluru

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