Link Securities | As reported yesterday by Dow Jones, the International Energy Agency (IEA) raised its oil demand growth forecast for 2024, but slightly cut estimates for next year, citing the impact of China’s economic slowdown on consumption.
The IEA now estimates that global demand will grow by 921,000 barrels per day (bpd) in 2024 from the 862,000 bpd previously estimated, largely due to higher-than-expected diesel deliveries in OECD countries.
For 2025, the IEA revised down its estimate of crude oil demand growth to 990,000 bpd from 998,000 bpd. This marks a marked slowdown from the roughly two million bpd growth seen last year, now that the post-pandemic surge in demand has abated and the rapid deployment of clean energy transportation technologies is moderating oil consumption growth.
In this regard, the IEA notes that China’s marked slowdown has been the main drag on demand, and that its growth this year is expected to average only one-tenth of the 1.4 million barrels per day increase in 2023.
