The International Energy Agency (IEA) further raised its 2024 global oil demand growth forecast, though its projection remains lower than OPEC’s expectations. IEA also said the market looked well supplied because of strong growth outside the producer group.
IEA forecasts global consumption will rise by 1.24 million barrels per day (bpd) in 2024. This was its third upward revision in as many months. IEA’s latest upward demand growth revision, up 180,000 bpd from its previous projection, was linked to improving global economic growth and lower crude prices in the fourth quarter plus China’s expanding petrochemicals sector.
IEA expects world oil supply to rise by 1.5 million bpd to a new high of 103.5 million bpd in 2024, fueled by record output from the U.S., Brazil, Guyana and Canada.
OPEC expects demand growth of 2.25 million bpd this year. It expects global oil demand to remain robust in 2024 and 2025 due to a strong global growth forecast and slowing inflation.
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