The International Energy Agency (IEA) has forecasted a slowdown in global oil demand growth, expecting it to drop to just under a million barrels per day (bpd) this year and next.
This slowdown is primarily attributed to a contraction in Chinese consumption during the second quarter amid economic challenges.
In its latest monthly oil report, the IEA noted that global demand in the second quarter increased by 710,000 bpd year-on-year, marking the lowest quarterly rise in over a year.
“China’s pre-eminence (is) fading. Last year the country accounted for 70% of global demand gains – this will decline to around 40% in 2024 and 2025,” the IEA said.
The IEA’s forecast for this year’s oil demand growth of 970,000 bpd remains largely unchanged from its previous outlook. For next year, the agency predicts a slight increase, estimating a growth of 980,000 bpd.
The IEA pointed out that the post-COVID economic rebound is leveling off globally. Factors such as lackluster economic growth, improved energy efficiency, and the rise of electric vehicles are expected to hinder oil demand growth this year and the next.
