OPEC Lowers Global Oil Demand Forecasts

Oil markets are experiencing volatility amid rising concerns of conflict in the Middle East and a revised outlook from OPEC that has lowered global oil demand growth expectations for 2024. While oil prices initially surged following geopolitical tensions, they retreated as traders reacted to disappointing economic data from major economies and OPEC's forecast cut from 2.25 million bpd to 2.11 million bpd for the year. Concurrently, India's bunkering activity has surged by 64% year-on-year, attributed to increased shipping activity due to geopolitical disruptions and favorable pricing in local markets. In the UK, wage growth has slowed, impacting inflation expectations and influencing market sentiment towards potential interest rate adjustments by the Bank of England. Overall, traders are exhibiting a bearish outlook on oil, with algorithmic trading contributing to rapid market sentiment shifts. As OPEC production increases, traders remain cautious, awaiting forthcoming economic data that could further affect oil prices.