by Alex Lawler

LONDON (Reuters) – The Organization of the Petroleum Exporting Countries (OPEC) said on Monday oil market fundamentals remained strong and blamed speculators for falling prices, while slightly raising its forecast for global demand growth for 2023 and maintaining its relatively high forecasts for 2024.

Concerns about economic growth and demand have weighed on oil prices in recent weeks, despite support from supply cuts by exporting countries and recent conflicts in the Middle East.

As a result, the barrel of Brent fell to around 82 dollars, while it had reached a high of 98 dollars in September for the year 2023.

OPEC, however, said in its monthly report that the market was healthy despite “exaggerated negative sentiments”, citing strong Chinese imports, minor downside risks to economic growth and a robust oil market.

“Recent data confirms the strength of major global growth trends and the good health of oil market fundamentals,” the organization said in an article that serves as a preface to its report.

“Oil prices have tended to fall in recent weeks, mainly driven by financial market speculators,” he said.

OPEC raised its forecast for global oil demand growth in 2023 to 2.46 million barrels per day (bpd), 20,000 bpd more than the previous forecast.

For 2024, OPEC forecasts an increase in demand of 2.25 million bpd, the same as last month.

OPEC still expects stronger demand growth next year compared to other forecasters such as the International Energy Agency.

OPEC and its allies, a group known as OPEC+, will meet on November 26 to define their policy after reducing production since the end of 2022 to support prices.

(Reporting Alex Lawler; Diana Mandiá, editing by Kate Entringer)

Copyright © 2023 Thomson Reuters