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 development however trimmed its forecast for subsequent 12 months, citing China’s slowing economic system.

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

The IEA mentioned 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 development of “simply shy of” 1 million B/D subsequent 12 months, versus “round” 1 million B/D beforehand.

Oil Demand Has Eased Since Publish-Pandemic Surge

The IEA forecasts are effectively under the post-pandemic development ranges in 2022 to 2023, once they had been round 2 million B/D. The slowing demand lately, the IEA mentioned, displays the easing of demand after a pandemic surge, “below-par underlying international financial circumstances,” and substitute of fossil gasoline use by customers with clear power alternate options.

The IEA’s forecasts comply with the newest outlook projection cuts by the Group of the Petroleum Exporting International locations (OPEC), which cited up to date knowledge 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.