IEA reduces oil demand forecasts during 2024

International Energy Agency on Friday reduced its forecast for oil demand growth in 2024, attributing this to lower-than-expected consumption in OECD countries and a decline in factory activity.

According to Reuters, the Paris-based energy agency reduced its growth forecast for this year by 130,000 barrels per day to 1.2 million barrels per day, adding that the release of pent-up demand from China, the world’s largest oil importer, after easing Covid-19 restrictions. It’s over.

The International Energy Agency said in its monthly oil report, “Delivery data for many countries was weak, as unusually warm weather in late winter reduced the use of heating fuels in the Organization for Economic Co-operation and Development more than usual.”

“In addition, the prolonged recession in factories in advanced economies continues to reduce demand for industrial fuels,” she explained.

She added that demand growth in 2025 will decline to 1.1 million barrels per day, with expectations that global GDP growth will remain stable and that expansion in the electric car sector will accelerate.

The International Energy Agency indicated that China’s contribution to the global increase in oil demand is expected to weaken from 79% in 2023 to 455% in 2024 and 27% next year.