Oil prices trim gains as OPEC cuts demand growth outlook

Oil prices were up about 1% on Wednesday having pared gains after producers group OPEC cut its forecasts for demand growth in 2024 and 2025, reports Reuters.

OPEC in its monthly reports has lowered its outlook five consecutive times.

Brent crude futures were up 74 cents, or 1.03%, to $72.93 a barrel by 1310 GMT. US West Texas Intermediate crude futures rose 76 cents, or 1.1%, to $69.35.

"The (OPEC) Secretariat's estimates continued to play catch up with consensus with further downward revisions implemented in the demand forecasts, reducing year-over-year growth in 2024 and 2025," said Harry Tchilinguirian, head of research at Onyx Capital Group.

OPEC+, which groups members of the Organization of the Petroleum Exporting Countries with other producers such as Russia, earlier this month delayed plans to start raising output.

Weak demand, particularly in China, and non-OPEC+ supply growth were two factors behind the move.

Brent rose as much as 1.42% to $73.22 earlier in the session, while WTI jumped as much as 1.5% to $69.62, as market participants anticipated a rise in demand from top importer China following Beijing's latest plans to boost economic growth.

China said on Monday it would adopt an "appropriately loose" monetary policy in 2025 marking the first easing of its stance in 14 years.