Save 20% off! Get our Magazines and get 20% off right away!

IEA trims oil demand forecast on weakness in wealthier countries

On Friday,April 12, 2024, the International Energy Agency (IEA) lowered its projection for 2024 oil demand growth, citing lower-than-expected consumption in OECD nations and a slowdown in manufacturing activity.

The Paris-based energy watchdog reduced its growth forecast for this year by 130,000 barrels per day (bpd) to 1.2 million bpd, citing the release of pent-up demand by major oil importer China after COVID-19 limitations were eased.

The International Energy Agency (IEA) indicated that several nations’ delivery data was weak owing to mild late-winter weather and a manufacturing slowdown in advanced economies. The IEA expects demand to rise by 1.1 million bpd in 2025, while global GDP growth remains stable.

After emerging later than other nations from Covid-19 movement limitations, China is projected to account for a smaller share of global demand increase.

According to the IEA, China’s contribution to global oil demand growth is expected to fall from 79% in 2023 to 45% in 2024 and 27% the following year.

“Despite the (global) deceleration that is forecast, this level of oil demand growth remains largely in line with the pre-Covid trend, even amid muted expectations for global economic growth this year and increased deployment of clean energy technologies,” the IEA said.

Source: Energy Ghana