IEA Cuts Global Oil Demand Growth Forecast
The International Energy Agency (IEA) cuts its global oil demand growth forecast for this year by approximately 21,000 barrels per day (bpd) compared to its previous estimate, citing weak demand in the second quarter from the world’s two largest oil consumers, the US and China.
Global oil demand is expected to reach 103.76 million bpd this year, representing an increase of about 720,000 bpd compared to last year, according to the IEA’s Oil Market Report.
In the previous report, the growth estimate was approximately 741,000 bpd. Demand in OECD countries is expected to decline by 100,000 bpd year-on-year to 45.57 million bpd, while demand in non-OECD countries is expected to increase by 820,000 bpd to 58.19 million bpd.
For next year, global oil demand is expected to rise by 740,000 bpd, reaching 104.5 million bpd. Global oil supply increased by approximately 320,000 bpd in May compared to the previous month, reaching 104.96 million bpd.
During this period, crude oil supply from the Organization of the Petroleum Exporting Countries (OPEC) rose by around 250,000 bpd, reaching 27.76 million bpd. OPEC’s production from other unconventional sources was recorded at 5.63 million bpd.
Thus, OPEC’s total oil supply increased by around 260,000 bpd month-on-month, reaching to 33.39 million bpd. Oil production from non-OPEC countries rose by approximately 70,000 bpd in the same period, reaching to 71.57 million bpd.
According to the report, the increase in global oil supply in May came equally from the OPEC+ group—which includes OPEC and some allied producers that began easing voluntary production cuts—and from non-OPEC countries. UBA: Analysts Upgrade Earnings, Price Expectations Ahead of Q2
