LONDON (Reuters) – The International Energy Agency (IEA) cut its oil demand growth forecast for 2024 on Friday, with the Paris-based organization citing lower-than-expected consumption in countries of the OECD and a slowdown in industrial activity.
The IEA lowered its demand growth outlook to 1.2 million barrels per day (bpd) this year, 130,000 bpd less than previously. She adds that the revival of Chinese demand, thanks to the relaxation of restrictions linked to Covid, has reached its limits.
“Delivery data for many countries was worse than normal as unusually warm late winter weather reduced the use of heating fuels in OECD countries more than normal” , declares the IEA in its monthly oil report.
“In addition, the prolonged slowdown in industrial activity in advanced economies has continued to depress demand for industrial fuels,” the report said.
Demand growth in 2025 will shrink to 1.1 million bpd, with global GDP growth expected to remain stable and the expansion of the electric vehicle market expected to accelerate, according to the IEA.
The IEA notes that China’s contribution to the global increase in demand is expected to decline, from 79% in 2023 to 45% in 2024 and to 27% next year.
(Reporting Noah Browning, Augustin Turpin, edited by Sophie Louet)
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