The International Energy Agency said, on Friday, that oil demand growth next year will be slower than previously expected, citing weak macroeconomic conditions, slow recovery from the Corona pandemic and the increasing use of electric cars.
The Paris-based agency said in its monthly report in August that oil demand growth is expected to slow to 1 million barrels per day (bpd) in 2024, down 150,000 bpd from its previous forecast.
“The global economic outlook remains challenging in the face of rising interest rates and shrinking bank credit, which is putting pressure on companies already dealing with slowdowns in manufacturing and trade,” the agency added.
Global oil demand is expected to grow in 2023 by 2.2 million barrels per day, supported by air travel during the summer, increased use of oil in electricity generation, and increased activity in the petrochemical sector in China.
The forecast remains largely unchanged from the agency’s previous estimates.
Demand is expected to average 102.2 million barrels per day this year, with China accounting for more than 70 percent of the growth, despite concerns about the strength of China’s economy, the world’s largest oil importer.
Demand hit a record high in June, amounting to 103 million barrels per day. The IEA said August could see a new peak.
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