IEA trims oil demand growth forecast for 2022

The International Energy Agency (IEA) cut its demand forecast for this year by 100,000 b/d to 2 million b/d as a result of the global economic slowdown.

The IEA predicts that global oil demand will slow in the final quarter of this year, while supply will exceed demand into 2023. This will result in a "much needed" build in stocks.

The report said demand growth slowed to 1.1 million b/d in the current quarter - less than a third of the 3.5 million b/d growth seen in the first half of the year. It expects demand from OECD countries to slow during the October-December period.

"Global oil demand remains under pressure from the faltering Chinese economy and an ongoing slowdown in OECD economies," the IEA said.

On the supply side, the IEA raised its annual growth estimates for 2022 and 2023 by 50,000 b/d and 40,000 b/d, respectively.

By Konica Bhatt

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