OPEC Faces Oil Price Decline Amid Weak Demand

The recent Asia Pacific Petroleum Conference highlighted a significant downturn in global oil demand, particularly due to a slowing Chinese economy, which has seen consumption contracting for four consecutive months. The International Energy Agency (IEA) reported that global oil demand growth decelerated to its slowest pace since 2020, raising concerns about a potential surplus in 2025 if current trends continue. OPEC+ has also had to postpone plans to increase production amid weak demand, with Brent prices falling 42% since their peak in July 2022. Analysts predict that crude prices could drop to the low $60s per barrel, or even $50 in a moderate U.S. recession. The global energy transition and mounting environmental pressures are predicted to further impact oil demand, with the industry facing risks from stranded assets and social pressures pushing toward sustainable investments. Overall, these developments suggest a challenging future for oil-producing nations reliant on fossil fuel revenues.