Oil demand set to stop growing in Q4 as slowdown bites, IEA says

A gas pump is seen hanging from the ceiling at a petrol station in Seoul . REUTERS/Jo Yong-Hak/File Photo

LONDON – Growth in global oil demand is set to grind to a halt in the fourth quarter of this year as an economic slowdown deepens, the International Energy Agency (IEA) said on Wednesday, but said it would resume strongly in 2023.

“Global oil demand remains under pressure from the faltering Chinese economy and an ongoing slowdown in OECD economies,” the Paris-based energy watchdog said in its monthly oil report.

The IEA cut its forecast for demand growth this year by 110,000 barrels per day (bpd) to 2 million bpd while keeping its 2023 growth forecast of 2.1 million bpd.

Rich countries in the Organization for Economic Cooperation and Development (OECD) accounted for most of the rise in demand this year, while countries outside the group especially China will underpin growth next year provided Beijing relaxes its COVID curbs.

“Non-OECD countries will cover three-quarters of 2023’s gains if China reopens as expected,” the IEA added.