IEA Upgrades Oil Demand Forecasts to 2.4mbpd
The International Energy Agency, IEA, has raised its 2023 oil demand growth forecast to 2.4 million barrels per day, lifting demand to 102 million barrels per day for the year.
In its Oil Market Report for November, the IEA said the upward revision was due to US deliveries proving more resilient than expected and Chinese oil demand setting another all-time high in September, fuelled by a booming petrochemical sector.
China is expected to account for 1.8 million b/d of the total 2.4 million b/d oil demand growth, the IEA said.
The agency expects growth to ease to 930,000 b/d in 2024 as the last phase of the pandemic economic rebound dissipates and amid advancing energy efficiency gains. However, global oil demand will still rise to a record annual high of 102.9 million b/d in 2024.
With oil demand growth expected to slow, the market could shift into a surplus at the start of 2024, according to the IEA.
Meanwhile, global oil output is expected to rise by 1.7 million b/d to a record 101.8 million b/d in 2023, driven by the US and Brazil, which are outperforming forecasts.
Non-OPEC+ will again drive overall growth in 2024 of 1.6 million b/d, the agency said.
Concerns that the war between Israel and Hama would escalate into a wider regional conflict that would disrupt oil supply flows have yet to materialize, the IEA noted. Cadbury Nigeria Shrinks Amid 81% Drop in Equity Capital