Market Insights > First Look

First Look - OPEC trims global oil demand growth forecasts for a third month

October 14, 2024 | Rishi Rajanala

Oil trades lower after China does not deploy additional stimulus measures
- Over the weekend, China did not announce any new stimulus packages at a highly anticipated briefing
- Market participants continue to await a potential Israeli attack on Iran
- OPEC cut its oil demand forecast for a third consecutive month
China to reach peak oil demand within a few years (S&P)
- China's refined product demand is expected to peak in 2027 at 16.4 MMBbl/d, while global refined product demand peaks in 2028
- Demand for gasoil and gasoline likely peaked in 2023 due to a rise in LNG trucks and new energy vehicles
- Refineries in China are investing in petrochemical production facilities, anticipating a peak in oil demand

Looking for interest rate charts? We moved them here

Interest Rate Charts and Tables

Gas starts the week lower in the aftermath of Hurricane Milton
- Prompt gas was 6.6c lower to $2.566/MMBtu (As of 8:14 AM)
- Winter ‘24/’25 strip is down 5.3c to $2.964, and the Summer ’25 strip is down 3.8c to $3.067
- A pick-up in production offsets added demand from Cove Point LNG’s return after maintenance, while the October weather outlook offers limited support
Feedgas deliveries to Cove Point LNG terminal resume following annual maintenance (S&P Global)
- Cove Point LNG terminal in Maryland resumed feedgas deliveries on Oct 10 after a three-week maintenance shutdown that began on Sept. 20, with production expected to resume shortly
- The terminal, with an 800 MMcf/d capacity, received 109 MMcf/d of feedgas on Oct 10, compared to zero during the maintenance period, according to S&P data
- Cove Point's restart is expected to tighten the Northeast gas market ahead of winter demand, with analysts forecasting a production rebound to 34.6 Bcf/d in Oct., up 500 MMcf/d from Sept.
- Eastern Gas South hub prices fell by 27c on Sept 21 to $1.20/MMBtu from $1.47/MMBtu, though the discount to Henry Hub narrowed to 81c/MMBtu by Oct 10, down from $1.17/MMBtu during the maintenance period
US power grid loses nearly 2 GW of gas-fired capacity in 2Q 2024 (Bloomberg)
- The US power grid saw a net decrease of almost 2 GW in gas-fired power in 2Q 2024, the largest decline since BloombergNEF began tracking in 2017
- A total of 11.8 GW of new capacity came online in 2Q 2024, 50% of which was solar, including 1.5 GW added in the Southwest; solar is expected to dominate future installations in traditionally wind-heavy regions like MISO and SPP
- Coal and gas plant retirements reached 4.2 GW, with ISO-NE leading with 1.7 GW in gas closures, primarily from the Mystic Generating Station
- Meanwhile, Vogtle Unit 4 nuclear reactor began operations in April 2024, adding 1.1 GW to the Southeast’s power grid, following the 3Q 2023 launch of Unit 3

First Look - OPEC trims global oil demand growth forecasts for a third month

October 14, 2024 | Rishi Rajanala

Looking for interest rate charts? We moved them here

Get market insights delivered to your Inbox every day!

Popular Now

Browse Top Tags

Let’s continue the conversation

First Look - OPEC trims global oil demand growth forecasts for a third month

October 14, 2024 | Rishi Rajanala

Looking for interest rate charts? We moved them here

Get market insights delivered to your Inbox every day!

Search Insights

Popular Now

Browse Top Tags

Let’s continue the conversation