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OPEC cuts 2024 oil demand forecast
OPEC trims its 2024 oil demand forecast, citing softer-than-expected data and ongoing market recalibrations.
OPEC revises 2024 oil demand growth down to 2.11 million bpd
Fed’s Bowman signals potential rate cuts if inflation trends down
OPEC lowers 2024 Oil demand growth forecast
OPEC has revised downward its forecast for global oil demand growth in 2024, now projecting an increase of 2.11 million barrels per day (bpd), down from the 2.25 million bpd estimate issued just a month earlier. The adjustment reflects updated data from the first quarter of 2024 and preliminary numbers from the second quarter.
The organization also reduced its outlook for 2025 demand growth to 1.78 million bpd, a slight decline from the previous forecast of 1.85 million bpd. OPEC attributed the revisions to a softer-than-expected start to the summer driving season, although it expects transportation fuel demand to remain strong, buoyed by robust road and air travel.
Fed's Bowman stresses focus on price stability
Federal Reserve Governor Michelle Bowman highlighted the importance of maintaining focus on price stability during remarks at a weekend event, noting that her "baseline" expectation is for inflation to continue its downward trajectory under the current policy framework.
Bowman hinted that if data indicate inflation is sustainably approaching the Fed’s 2% target, it might be appropriate to "gradually lower the federal funds rate" to avoid excessive tightening that could stifle economic growth and employment. However, she underscored that monetary policy is "not on a preset course," emphasizing that future decisions will depend on forthcoming economic data.
By the Fed's September meeting, policymakers will have access to an additional employment report and two more inflation readings, providing a clearer picture of the economic landscape. Bowman also noted that despite recent volatility, equity prices have remained higher than at the close of last year, signaling resilience in financial markets.
While acknowledging progress in reducing inflation, Bowman warned that it remains "somewhat elevated" with potential "upside risks." She reiterated the need for vigilance on price stability while also being mindful of any significant downturns in the labor market.
