11:17 AM EDT, 10/14/2024 (MT Newswires) -- The Organization of the Petroleum Exporting Countries cut its 2024 and 2025 global oil demand projections on Monday while holding supply estimates steady.

In its latest monthly oil report, the cartel lowered its demand growth estimate for this year to 1.93 million barrels a day from 2.03 million barrels projected in September. The revision reflects "actual data" received and slightly lower demand expectations in some regions, the OPEC said.

The 2024 headline outlook remains "well above" the historical average of 1.4 million barrels per day seen before the coronavirus pandemic, the cartel wrote.

Oil demand in member nations outside of the Organization for Economic Co-operation and Development, or OECD, was reduced to an increase of 1.80 million barrels a day for 2024 from 1.9 million barrels projected in the September report, with China leading the growth. Within OECD, estimates were revised higher in the Americas, primarily reflecting an expected improvement in US oil demand, the OPEC said.

For 2025, the cartel is now forecasting oil demand to rise by 1.64 million barrels per day, down from its previous outlook of 1.74 million barrels. Non-OECD demand is seen growing by 1.54 million barrels a day next year, down from the OPEC's 1.64 million barrel estimate last month, with China again leading the growth.

The OPEC previously trimmed 2024 and 2025 demand forecasts in its August and September monthly reports.

West Texas Intermediate crude oil was down 2% at $74.06 a barrel in Monday trade, while Brent slipped 1.9% to $77.50. Futures for both logged gains in the past two weeks amid heightened uncertainty around the geopolitical situation in the Middle East.

The cartel said liquid supply from countries not participating in the Declaration of Cooperation, or DoC, is expected to grow by 1.2 million barrels a day this year, unchanged from last month's report. The US, Canada, Brazil and China will likely remain the biggest contributors. The oil supply growth forecast for next year was also left unchanged, at 1.1 million barrels per day. The DoC is the name for OPEC+, which comprises OPEC and non-OPEC members.

The global economic growth rate held steady at 3% for 2024 and 2.9% for 2025, which the OPEC said reflects "solid growth" through the first three quarters of the year in most major economies. US economic growth was revised up by 0.1 percentage point to 2.5%, reflecting upward revisions to first-half data, while the rate for 2025 was unchanged at 1.9%. The US economy has benefited from consumer spending on services despite elevated interest rates, the cartel said.

"Non-OECD economies have generally outperformed expectations and are projected to continue this trend," it wrote. "Despite challenges in China's real estate sector and domestic consumption, the export-driven segments of the economy are performing well, and recent government-led stimulus is anticipated to support growth around the 5% target for 2024."