IEA lowers oil demand forecast for 2024

The International Energy Agency (IEA) trimmed today, April 12, its expectation for 2024 oil demand growth, citing lower-than-expected consumption in OECD countries and a slump in factory activity.

The agency lowered its growth outlook for this year by 130,000 barrels per day (bpd) to 1.2 million bpd, adding that the release of pent-up demand by top oil importer China after easing COVID-19 curbs had run its course.

"Delivery data for many countries came in on the soft side, as unusually warm late-winter weather curtailed OECD heating fuel use by more than normal," the IEA said.

"Additionally, the protracted factory slump in advanced economies continued to depress demand for industrial fuel," it noted.

Demand growth in 2025 will edge down to 1.1 million bpd, the IEA said, noting that global GDP growth is forecast to remain steady and electric vehicle expansion would gather pace.