Brent rises 11% in October amid output cuts, demand prospects

Oil drilling rigs

Oil closed lower today, Oct. 31, with OPEC revealing its demand estimates and amid renewed concerns about a slowdown in consumption by China.

The Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand in the medium and long term, expecting that demand to rise to 105.5 million barrels by 2025 from 96.9 million barrels in 2021.

OPEC also believes that the demand for oil will reach 108.3 million barrels by 2030, then settle at 109.5 million barrels from 2040 to 2045.

Meanwhile, latest data showed a contraction in factory activity in China during October, as the manufacturing purchasing managers' index fell to 49.2 points from 50.1 points in September. However, oil prices recorded the first monthly rise since May, after OPEC+ announced its plan to reduce crude production by two million barrels per day, starting from November.

Brent crude futures witnessed a decline of 1%, or 94 cents, to $ 94.83 a barrel upon settlement today, but rose by 11.3% this month. WTI crude also fell 1.6%, or $1.37, to reach $86.53 a barrel, but it rose 9.9% in October.