Morgan Stanley Lowers 2024 Oil Demand Forecast Due to China Concerns
OIL & GAS

Morgan Stanley Lowers 2024 Oil Demand Forecast Due to China Concerns

Morgan Stanley has revised its 2024 oil demand growth outlook, reducing the forecast due to economic challenges in China, the world's second-largest oil consumer. The bank now predicts global oil demand to increase by 1.5 million barrels per day (bpd) in 2024, down from the previous estimate of 1.6 million bpd.

China's sluggish economic recovery, slower industrial output, and weaker-than-expected demand for oil-related products have raised concerns about the country's ability to drive global oil consumption. As China faces ongoing economic headwinds, including a struggling property sector and slower export growth, these factors have significantly influenced the global oil demand outlook.

Morgan Stanley also highlighted the impact of increased energy efficiency and the transition toward cleaner energy alternatives, further dampening the demand for traditional oil. The rise of electric vehicles and renewable energy initiatives are expected to contribute to a slower pace of oil consumption growth in the coming years.

Despite the lowered forecast, Morgan Stanley noted that global oil markets could remain tight in 2024, particularly if production cuts by OPEC+ continue. While demand growth is expected to moderate, supply-side constraints may still support higher oil prices over the next year.

Morgan Stanley has revised its 2024 oil demand growth outlook, reducing the forecast due to economic challenges in China, the world's second-largest oil consumer. The bank now predicts global oil demand to increase by 1.5 million barrels per day (bpd) in 2024, down from the previous estimate of 1.6 million bpd. China's sluggish economic recovery, slower industrial output, and weaker-than-expected demand for oil-related products have raised concerns about the country's ability to drive global oil consumption. As China faces ongoing economic headwinds, including a struggling property sector and slower export growth, these factors have significantly influenced the global oil demand outlook. Morgan Stanley also highlighted the impact of increased energy efficiency and the transition toward cleaner energy alternatives, further dampening the demand for traditional oil. The rise of electric vehicles and renewable energy initiatives are expected to contribute to a slower pace of oil consumption growth in the coming years. Despite the lowered forecast, Morgan Stanley noted that global oil markets could remain tight in 2024, particularly if production cuts by OPEC+ continue. While demand growth is expected to moderate, supply-side constraints may still support higher oil prices over the next year.

Next Story
Equipment

TIL Limited Returns to bauma CONEXPO After 8 Years

TIL Limited, a cornerstone in India’s material handling and infrastructure equipment manufacturing sector, made a triumphant return to Bauma ConExpo India 2024 under the Gainwell Group banner, marking a significant milestone in its transformation journey. The company's participation at Asia's premier construction equipment exhibition, held from December 11-14, 2024, at India Expo Centre, Greater Noida, showcased its revitalised market presence and successful integration of global partnerships with local manufacturing excellence. At its expansive 800-square-meter display area (Stall No. OG-5..

Next Story
Building Material

NMC Begins Rs 73.7 Million Road Concreting Project

Nashik Municipal Corporation (NMC) has initiated plans to concrete a 1-kilometer stretch of road connecting Rajiv Gandhi Bhavan, NMC's headquarters, and the Golf Club ground signal near Veer Savarkar swimming pool. The project, estimated at Rs 73.7 million, aims to address the deteriorated road conditions caused by the monsoon. The stretch, which includes the mayor's residence, Ramayan, has been plagued by potholes, prompting residents to demand urgent action. The road's condition worsened after the Nashik Municipal Smart City Development Corporation Ltd (NMSCDCL) installed water pipelines las..

Next Story
Infrastructure Transport

Pune Ring Road: Collector Sets December Deadline for Final Acquisition

Pune District Collector Suhas Diwase has directed officials to complete the final phase of land acquisition for the Pune Ring Road by the end of December, enabling construction to begin in January 2025. The process involves acquiring 207 hectares across eastern and western phases of the project, with land acquisition spanning three villages in each phase. For the eastern phase, 143 hectares need to be acquired, while 64 hectares are required for the western phase. Land acquisition officer reports confirm that compensation for the land has already been announced, facilitating timely completion...

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000