The International Energy Agency (IEA) raised its global oil demand growth forecast for next year on Thursday, despite an expected slowdown in economic growth. Although the agency, which represents industrialized countries, has increased its forecasts, there remains a significant gap between its predictions and those of the Organization of the Petroleum Exporting Countries (OPEC), which represents producing countries for next year. The two sides have differed in recent years on issues such as long-term demand and the need for investment in new supplies.
The IEA, based in Paris, stated in its monthly report that global consumption will rise by 1.1 million barrels per day in 2024, an increase of 130,000 barrels per day from its previous forecasts. It noted that the adjustment reflects "somewhat improved GDP expectations compared to last month's report... this is particularly applicable to the United States, where an acceptable degree of economic slowdown is looming compared to inflation and unemployment." It added that "lower oil prices provide an additional boost to oil consumption."
