Governor Newsom and the State Legislature are attempting to eradicate the oil production industry from California. If that happens by 2045 as is planned, then California will become one-hundred percent dependent upon OPEC+ countries and South American countries like Ecuador for oil.
Allowing Riyadh, Saudi Arabia, to set California gas prices is not just lacking in commonsense; it’s dangerous.
Reuters reports that OPEC revised its forecast for global oil demand growth for 2024 and 2025, marking the organization's third consecutive downward revision.
In its monthly report released last week, OPEC said it expects oil demand to be at 1.93 million barrels per day (bpd) in 2024, down from the 2.03 million bpd forecasted last month. China’s demand outlook was notably reduced, with projected growth now at 580,000 bpd, down from 650,000 bpd, due to economic challenges and increased use of liquefied natural gas (LNG) in heavy-duty transportation.
OPEC noted that diesel consumption has remained weak amid a slowdown in construction and industrial activity. The shift to LNG-powered trucks has also reduced petroleum diesel demand.
The report comes as OPEC+, which includes OPEC members and allies like Russia, prepares to gradually increase production in December after delaying an earlier hike due to falling prices.
OPEC+ has implemented significant production cuts since late 2022 to stabilize the market, with most cuts extending through 2025. Production disruptions in September due to unrest in Libya and a reduction by Iraq further impacted output. Meanwhile, Russia reduced production by 28,000 bpd to 9 million bpd.