IEA Revises 2024 Oil Demand Growth Forecast Amid Chinese Economic Slowdown

The International Energy Agency (IEA) has reduced its 2024 oil demand growth forecast by 70,000 barrels per day (bpd) to 900,000 bpd. A primary factor for this revision is the slowdown in Chinese demand, linked to a broader economic slowdown and increased adoption of electric vehicles.

The International Energy Agency (IEA) has reduced its 2024 oil demand growth forecast by 70,000 barrels per day (bpd), or roughly 7.2%, to 900,000 bpd, as cited in its latest monthly oil market report released Thursday. The Paris-headquartered agency identified a deceleration in Chinese demand as the primary reason for the downward adjustment.

The IEA now anticipates Chinese oil demand to grow by only 180,000 bpd in 2024, attributing the reduced growth to a broader macroeconomic slowdown in China and increased adoption of electric vehicles. This trend of weakening demand aligns with the IEA's prediction that global oil demand will peak by the decade's end.

Despite adjusting its 2024 forecast, the IEA left its 2025 oil demand growth projection unchanged at approximately 950,000 bpd. However, it hinted that the global oil market might experience oversupply next year if the OPEC+ coalition follows through with its planned rollback of voluntary output reductions.

(With inputs from agencies.)