OPEC+ Output Hike Faces Uncertain Demand Outlook Amid Economic Concerns

Global oil demand must increase in the coming months for the market to handle the supply increase planned by OPEC+ from October. Demand in the first seven months from the US and China has been lower than expected, worsened by fears of a US recession. Slower economic growth will likely reduce oil demand, forcing OPEC+ to either postpone their production increase or accept lower prices. Analysts believe OPEC+ is unlikely to proceed with the planned increase amidst recession risks. Oil prices have dropped below the budget needs of most OPEC+ members. Concerns about the Chinese and US economies contribute to the uncertainty, making significant price increases unlikely if demand remains low. Data shows a decline in China`s crude imports and US consumption, though the latter needs to accelerate to meet forecasts. Discrepancies in demand measurements from different analysts further complicate the outlook.