IEA Raises 2024 Oil Demand Projection, Trims Subsequent 12 months’s

The Worldwide Vitality Company (IEA) on Thursday raised its projection for 2024 oil demand progress however trimmed its forecast for subsequent 12 months, citing China’s slowing economic system.

“China’s marked slowdown has been the primary drag on demand, with its progress this 12 months anticipated to common only a tenth of the 1.4 mb/d enhance in 2023,” the Paris-based group stated.

The IEA stated world oil demand is forecast to develop by round 920,000 barrels per day (B/D) this 12 months, up from “simply shy of” 900,000 B/D in its October projection. The Paris-based company is forecasting progress of “simply shy of” 1 million B/D subsequent 12 months, versus “round” 1 million B/D beforehand.

Oil Demand Has Eased Since Put up-Pandemic Surge

The IEA forecasts are effectively beneath the post-pandemic progress ranges in 2022 to 2023, after they have been round 2 million B/D. The slowing demand lately, the IEA stated, displays the easing of demand after a pandemic surge, “below-par underlying international financial situations,” and substitute of fossil gasoline use by shoppers with clear power options.

The IEA’s forecasts observe the newest outlook projection cuts by the Group of the Petroleum Exporting International locations (OPEC), which cited up to date information for the primary three quarters of the 12 months.

The worth of Brent crude was buying and selling barely greater at $72.54 a barrel Thursday, whereas West Texas Intermediate crude was edging greater at $68.69 a barrel.