OPEC+ Holds Steady Amid Uncertain Global Oil Demand
OPEC+ has decided to maintain current oil production cuts until the end of the year, but crude oil prices have fallen, suggesting that the cuts may already be causing higher prices. While demand destruction is occurring in the US, China, India, and Brazil are experiencing rising oil demand. The global economy is facing the challenge of whether it can sustain itself as oil prices approach $100 per barrel without significantly reducing oil demand. Forecasts of peak oil demand continue to emerge, with some predicting a drop in oil prices due to ample supply and a peak in demand growth, while others warn of a future supply deficit. The market is currently well supplied, but the delicate balance may shift in the near future, revealing the elasticity of oil demand.
