Global oil demand set to grow by 2.2 million b/d in 2023 - IEA
Global oil demand is expected to surge to 102.2 million b/d this year due to strong summer air travel demand, higher oil use in the power sector, and soaring Chinese petroleum activity, it stated.
PHOTO: Oil pumpjacks. Getty Images
However, the International Energy Agency (IEA) also sees a 1 million b/d decline in oil demand growth in 2024. Stricter efficiency standards and new electric vehicles could weigh on oil demand, it added.
The energy agency has kept its August oil demand forecast for 2023 broadly unchanged from the previous month’s projection. China accounts for more than 70% of the demand growth in 2023, IEA stated.
Global oil output is projected to grow by 1.5 million b/d to 101.5 million b/d in 2023, “with the US driving non-OPEC+ gains of 1.9 million b/d,” the energy market watchdog further said in its monthly Oil Market Report (OMR). For 2024, non-OPEC supply is set to grow by 1.3 million b/d, while the agency projects OPEC+ crude supply to add 160,000 b/d in 2024.
“Deepening OPEC+ supply cuts have collided with improved macroeconomic sentiment and all-time high world oil demand,” IEA stated. “With output cuts hitting the heavy sour crude market hard, Dubai crude is trading at a rare premium to Brent,” it further added in the report.
By Aparupa Mazumder
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