PARIS (Reuters) – The International Energy Agency (IEA) on Tuesday raised its forecast for growth in oil demand for this year and next, despite an expected deceleration in economic growth in almost all major savings.
Oil demand has been supported this year by resilient U.S. production and record demand from China in September, while forecasts for 2024 are buoyed by hopes of interest rate cuts and the recent fall in prices crude, said the Paris-based agency.
“For now, with demand still exceeding available supply as winter approaches in the northern hemisphere, market balances will remain vulnerable to increased economic and geopolitical risks, and are expected to be more volatile as winter approaches. ‘future,’ the agency said.
For 2023, the agency revised its growth forecast upwards to 2.4 million barrels per day (bpd), compared to 2.3 million bpd previously forecast. For 2024, it raised its growth forecast to 930,000 barrels per day (bpd), compared to 880,000 bpd previously.
Although production cuts by Saudi Arabia and Russia will help constrain supply, slowing demand could push the market into surplus in early 2024, the IEA said.
(Written by Natalie Grover and Alex Lawler in London, Corentin Chappron, edited by Kate Entringer)
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