IEA lowers 2024 oil demand growth forecast

LONDON – The International Energy Agency (IEA) on Friday said demand growth for oil next year will be slower than previously forecast, citing lackluster macroeconomic conditions, a post-pandemic recovery running out of steam and the burgeoning use of electric vehicles.

Growth is forecast to slow to 1 million barrels per day (bpd) in 2024, the Paris-based energy watchdog said in its August monthly oil market report, down by 150,000 bpd from its previous forecast.

“The global economic outlook remains challenging in the face of soaring interest rates and tighter bank credit, squeezing businesses that are already having to cope with sluggish manufacturing and trade,” the IEA said.

In 2023, global oil demand is set to expand by 2.2 million bpd, buoyed by summer air travel, increased oil use in power generation and surging Chinese petrochemical activity.

That forecast is largely unchanged from the IEA’s previous estimate.

Demand is forecast to average 102.2 million bpd this year, with China accounting for more than 70 percent of growth, despite concerns about the economic health of the world’s top oil importer.

Demand hit a record 103 million bpd in June. The IEA said August could see yet another peak.