IEA predicts record oil demand growth this year, but a slowdown in 2024

Global oil demand will grow at a record pace of 2.4 million b/d this year before slowing down to 860,000 b/d in 2024, according to the International Energy Agency (IEA).

PHOTO: Getty Images

The IEA has now forecast global oil demand to average 102.3 million b/d in 2023, a 200,000 b/d hike from its previous prediction. It notes that global oil demand has remained resilient despite macroeconomic challenges.

The upward revision for this year reflects China and India's robust oil demand, as well as an expected increase in US oil demand during the summer.

In contrast, the IEA has warned that a deteriorating global macroeconomic situation and a waning recovery from the post-pandemic crisis will adversely affect global oil demand next year.

According to the Paris-based agency, global oil demand growth is “set to decelerate” to 860,000 b/d in 2024.

“The impact of the unprecedented monetary policy tightening can further curtail activity and limit advanced economies to a second year of subpar growth in 2024,” it cautions.

Similarly, the energy market watchdog also projects supply growth to slow next year, from 1.4 million b/d in 2023 to 1 million b/d in 2024. Global oil supply is forecast to reach a record of 101.3 million b/d this year and 102.3 million b/d next year.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online