IEA cuts oil demand growth expectations during 2024

The International Energy Agency expects global oil demand to reach 106 million barrels per day by the end of this decade, while the total volume of supply could reach 114 million barrels per day, which will lead to a large surplus of 8 million barrels per day for which oil markets must prepare, while It reduced its forecast for oil demand growth during the current year by 100,000 barrels to 960,000 barrels per day.

The International Energy Agency indicated in its report that fast-growing Asian countries such as China, along with the aviation and petrochemical sectors, will continue to contribute to increasing demand for oil, which reached 102 million barrels per day in 2023.

She explained that the shift towards electric cars, along with gains in fuel efficiency for traditional vehicles, and the decline in the use of oil by Middle Eastern countries to produce electricity, would help limit the increase in overall demand to about 4% by 2030.

She added, “It appears that oil production capacity is on its way to rising, led by the United States and other countries in the Americas, leading to an expected surplus of 8 million barrels – a level that was only reached during the closures caused by the Corona virus.”

Fatih Birol, Executive Director of the agency, said in a statement, “With the decline in the momentum of the post-pandemic recovery, progress in the transition to clean energy, and structural shifts in the Chinese economy, the growth of global oil demand is slowing and is scheduled to reach its peak by 2030.”