The International Energy Agency (IEA) today, Friday, reduced its growth outlook for oil demand for the year 2024, attributing this to lower-than-expected consumption in OECD countries and a decline in factory activity. The Paris-based agency lowered its growth forecast for this year by 130,000 barrels per day to 1.2 million barrels per day, adding that the release of pent-up demand from China, the world's largest oil importer, following the easing of COVID-19 restrictions, has ended.
In its monthly oil report, the IEA noted, "Delivery data for several countries was weak, as unusually warm weather in late winter reduced heating fuel use in OECD countries more than usual." It explained, "In addition, the prolonged recession in factories in advanced economies continued to dampen demand for industrial fuels."
The agency added that demand growth in 2025 will decline to 1.1 million barrels per day, with expectations that global GDP growth will remain stable and the expansion in the electric vehicle sector will accelerate. The IEA pointed out that China's contribution to the global increase in oil demand is expected to weaken from 79 percent in 2023 to 45 percent in 2024 and 27 percent the following year.
