LONDON: The International Energy Agency (IEA) has cut its 2024 oil demand growth forecast by 70,000 barrels per day (bpd), or about 7.2 per cent, to 900,000 bpd, it said in its monthly oil market report on Thursday.
The Paris-based agency cited a slowdown in Chinese demand as the main driver of weaker global demand growth. It now expects Chinese demand to grow by only 180,000 bpd in 2024 as a broader macroeconomic slowdown coincides with higher uptake of electric vehicles.
"With the steam seemingly running out of Chinese oil demand growth, and only modest increases or declines in most other countries, current trends reinforce our expectation that global demand will plateau by the end of this decade," the IEA said.
The IEA left its 2025 demand growth forecast unchanged on the month at about 950,000 bpd but suggested that the global oil market could be oversupplied next year if the OPEC+ producer group proceeds with its plan to unwind voluntary output cuts.