IEA Reduces 2024 Oil Demand Forecast, Contrary To OPEC

(CTN News) – According to the International Energy Agency (IEA), global oil demand growth is losing momentum, and as a result, the agency trimmed its growth forecast for 2024, a view that differs sharply from that held by the major oil producer group OPEC.

A future peak in oil demand will be predicted by the International Energy Agency, which represents industrialised countries, by 2030 as the world shifts to cleaner sources of energy.

For the next two decades, the OPEC expects that oil usage will continue to rise as a result of increasing oil production.

The two forecasters have published separate monthly reports this week, and based on the reports, their estimates for the oil demand for the year 2024 seem to vary greatly from one another.

In its monthly report published on Thursday, the IEA said that it expects global oil demand to grow by 1.22 million barrels per day (bpd) this year, a small decline from last month’s estimate.

OPEC on Tuesday maintained its much steeper growth forecast for oil production at 2.25 million barrels per day. According to the IEA, this year’s deceleration, which is about half of the growth in 2023, is being caused by a slowdown in Chinese consumption, which is causing global growth to slow.

According to the IEA, the demand for gasoline will grow by 1.24 million barrels per day by 2024.

In addition, a harsher global macroeconomic environment is likely to constrain growth this year, as the IEA stated in its report that “the expansion phase of global oil demand post-pandemic is over.”

Brent oil has risen about 6% in price so far this year as a result of attacks on ships in the Red Sea which have raised concerns about supply.

SEE ALSO:

Work from Home Orders Given as PM2.5 Air Quality Levels Hit Harmful Levels in Bangkok