The International Energy Agency Raises Forecast for Global Oil Demand

Overview

The International Energy Agency raised its forecast for global oil demand in 2023 to “the highest level ever recorded” to 102.2 million barrels per day, according to a monthly report released on Friday.

The Paris-headquartered agency said “global oil demand is expected to increase by 2.2 million barrels per day” compared to 2022, “reaching 102.2 million barrels per day in 2023, while China will represent more than 70% of the total demand.”

Future Growth and Projections

And it expected “growth to slow by one million bpd in 2024,” noting that in February the agency expected demand to reach 101.9 million bpd in 2023, essentially a record level.

The agency said oil demand growth is expected to slow to one million barrels a day in 2024, down 150,000 barrels a day from previous forecasts.

Challenges and Implications

“The global economic outlook remains challenging amid rising interest rates and shrinking bank loans, putting pressure on companies that are already facing a slowdown in manufacturing and trade,” she added.

The lack of supplies fueled the rise in oil prices, as Brent crude topped $88 a barrel on Thursday, the highest level since January. And the International Energy Agency has warned that global inventories could fall sharply over the remainder of this year, likely pushing prices up.