Global oil demand growth likely to drop in 2023: IEA

Global oil demand growth likely to drop in 2023: IEA

PARIS: Global oil demand is expected to climb by 2.2 mb/d in 2023 to reach 102.1 mb/d, a new record, International Energy Agency has in a recent report. However, persistent macroeconomic headwinds, apparent in a deepening manufacturing slump, have led the agency to revise its 2023 growth estimate lower for the first time this year, by 220 kb/d. Buoyed by surging petrochemical use, China will account for 70 percent of global gains, while OECD consumption remains anemic. Growth is estimated to slow to 1.1 mb/d in 2024, the report said.

World oil supply rose 480 kb/d to 101.8 mb/d in June but is set to fall sharply this month as Saudi Arabia makes a sharp 1 mb/d voluntary output cut. For 2023, global production is forecast to increase by 1.6 mb/d to 101.5 mb/d, as non-OPEC+ expands by 1.9 mb/d. In 2024, global supply is set to rise by 1.2 mb/d to a new record of 102.8 mb/d, with non-OPEC+ accounting for all of the increase. World oil demand is coming under pressure from the challenging economic environment, not least because of the dramatic tightening of monetary policy in many advanced and developing countries over the past twelve months, the agency