IEA Warns of Oil Market Surplus Amid Weak Demand in 2025

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IEA,Global Oil Market,China

The IEA has revised its global oil demand growth forecast upwards for 2024 but warns of weak demand and a potential supply overhang in 2025.

Global oil demand will rise by 920,000 barrels per day bpd this year, the International Energy Agency IEA said on Thursday, lifting its growth estimate from a month ago, but warned that weak demand growth will lead to a supply overhang next year. In its monthly oil market report today, the IEA raised its 2024 oil demand growth estimate to 920,000 bpd, up from 862,000 bpd in the October report.

With only six weeks left of the year, global oil demand is on track to expand by just 920,000 bpd to an average 102.8 million bpd in 2024. This would compare with growth close to 2 million bpd last year and 1.2 million bpd per year on average over the period 2000 to 2019, the agency said. 'China's marked slowdown has been the main drag on demand, with its growth this year expected to average just a tenth of the 1.4 mb/d increase in 2023,' the IEA said.

 

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