The International Energy Agency (IEA) reported that global oil demand growth is expected to slow to just under a million barrels per day (bpd) this year and next, driven by reduced Chinese consumption due to economic challenges.
In the second quarter, global demand increased by 710,000 bpd year-over-year, marking the lowest quarterly rise in over a year, according to the IEA’s monthly oil report.
“China’s pre-eminence is fading. Last year, the country accounted for 70% of global demand gains – this will decline to around 40% in 2024 and 2025,” the IEA noted.
The IEA’s forecast for modest oil demand growth of 970,000 bpd this year remains largely unchanged from the previous month’s outlook, with a slight increase to 980,000 bpd projected for next year.
As the global economic rebound post-COVID stabilizes, the IEA added that tepid economic growth, enhanced energy efficiency, and the rise of electric vehicles will act as barriers to growth this year and the next.
