Page 10 - Policy Economic Report - November 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Figure 4: Global economic growth and the PMI

Source- S&P Global

2. OPEC cuts forecast for 2024 oil demand growth, lowers projection for 2025

OPEC cut its forecast for global oil demand growth highlighting weakness in China, India and other regions,
marking the producer group's fourth consecutive downward revision in the 2024 outlook. According to
OPEC, world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93
million bpd forecast last month.

OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd. China accounted for the bulk
of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and
said diesel use in September fell year-on-year for a seventh consecutive month. According to OPEC, diesel
has been under pressure from a slowdown in construction amid weak manufacturing activity, combined
with the ongoing deployment of LNG-fuelled trucks

Further, forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over
demand from China and the pace of the world's switch to cleaner fuels.

3. Key Outcomes from COP29: Unpacking the New Global Climate Finance Goal

The UN Climate Change Conference (COP29) was held on November 11-22, 2024, in Azerbaijan. The
Conference held talks focused on conquering climate change and on the Paris climate targets. The core
objectives included:

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