Oil Demand is expected to fall half in 2024: IEA

The Paris-based agency has anticipated the increase in global oil demand to halve from 2.3 million barrels per day [bpd] to 1.2 million bpd in 2024. As per the expectations, the pace of demand growth will be strategically maintained by China this financial year, as the world’s second-largest economy accounts for around 60 per cent of the oil demand growth.

The cited reasons behind the downgraded oil demand are strict economic influence, international rate of interest, and increase of electric vehicles coupled with the growing structure of green energy has sharply led to a decrease the demand of oil demand in the next half of 2023 and mid-start of 2024.

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The projections led by the International Energy Agency predicted global consumption will rise by 1.24 million barrels per day [bpd] in 2024. Yet the predictions were so far low from OPEC’s 2.25 million bpd projection. Similarly, the organization has expected the world oil supply to rise by 1.5 million bpd to 103.5 million bpd in 2024, stimulated by incredible output growth from the United States, Brazil, Guyana, and Canada.

Meanwhile, the concluding reason has been derived from the conflicts and disruptions engulfed in central east and Middle East, concerns accumulated in Red sea shipments war. The outflow has been hampered by disrupting strife originating in trading ports. The IEA’s projections is risen by 180,000 bpd is significantly linked to suitable global economic growth in addition to lower crude oil prices in the fourth quarter.

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As per the agency, the global oil demand growth has experienced a significant decrease from the 3.2 million bpd rate during the second and third quarters of 2023.

The Paris-based International Energy Agency is a 31 member countries group and 13 association countries represent the 75% of global energy demand.

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