LONDON: OPEC on Wednesday said it remained cautiously optimistic about 2024 oil market fundamentals and blamed “exaggerated concerns” about demand for a recent drop in prices, as it stuck to its relatively high 2024 oil use prediction.

Oil has weakened to a six-month low near $72 a barrel for Brent crude from a 2023 high in September near $98.

The decline has deepened since OPEC+, which includes OPEC oil-exporting nations and allies such as Russia, on Nov. 30 announced a new round of production cuts.

But the Organization of the Petroleum Exporting Countries in a monthly report said it remained “cautiously optimistic about the fundamental factors affecting oil market dynamics in 2024” and said speculators had played a major role in pushing prices lower.

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“Crude oil futures prices experienced a significant downturn, marked by heavy selloffs amidst a highly volatile futures market,” OPEC said in a commentary on prices in November.

“The market dynamic was fuelled by exaggerated concerns about oil demand growth, which negatively impacted market sentiment.”

OPEC kept its forecast for world oil demand growth in 2023 steady at 2.46 million barrels per day (bpd). In 2024, OPEC sees demand growth of 2.25 million bpd, also unchanged from last month.

OPEC has consistently forecast stronger demand growth for next year than other forecasters such as the International Energy Agency, although the two have a similar view on 2023 demand.

OPEC+ oil producers have been cutting production since late 2022 to support the market in a series of steps. The OPEC report noted that OPEC oil production fell in November.