[ad_1]
LONDON: World oil demand development is shedding momentum, the Worldwide Power Company (IEA) mentioned on Thursday because it trimmed its 2024 development forecast in sharp distinction with projections by producer group Opec.
The tempo of growth is about to decelerate to 1.22 million barrels per day (bpd) this 12 months – about half of the expansion in 2023 – owing partly to a sharp slowdown in Chinese language consumption, the company mentioned.
It had beforehand forecast 2024 demand development of 1.24 million bpd.
“The expansive post-pandemic development section in world oil demand has largely run its course,” the IEA mentioned, including {that a} harsher world macroeconomic local weather can be more likely to constrain development this 12 months.
The Brent crude oil benchmark has risen about 6% for the reason that begin of the 12 months as assaults on delivery within the Purple Sea have raised provide fears, with January outages in main non-Opec oil producing international locations corresponding to the US including to considerations.
Beneficial properties, nonetheless, have been capped by worries over demand as main economies proceed to grapple with excessive rates of interest geared toward curbing sticky inflation.
The Paris-based company has predicted oil demand will peak by 2030 because the world shifts to cleaner power, however Opec expects oil use to maintain rising for the following 20 years.
On the provision facet, IEA raised its projection for 2024, estimating provide will develop by 1.7 million bpd versus its earlier forecast of 1.5 million bpd. The company cited provide from producers outdoors Opec and allies that make up the broader Opec+ group of producers.
The IEA now expects provide to develop to a document excessive of about 103.8 million bpd, nearly totally pushed by producers outdoors Opec+, together with the US, Brazil and Guyana.
Given the sturdy outlook for provide outdoors Opec+, the IEA expects a slight construct in inventories within the first quarter, it mentioned.
The tempo of growth is about to decelerate to 1.22 million barrels per day (bpd) this 12 months – about half of the expansion in 2023 – owing partly to a sharp slowdown in Chinese language consumption, the company mentioned.
It had beforehand forecast 2024 demand development of 1.24 million bpd.
“The expansive post-pandemic development section in world oil demand has largely run its course,” the IEA mentioned, including {that a} harsher world macroeconomic local weather can be more likely to constrain development this 12 months.
The Brent crude oil benchmark has risen about 6% for the reason that begin of the 12 months as assaults on delivery within the Purple Sea have raised provide fears, with January outages in main non-Opec oil producing international locations corresponding to the US including to considerations.
Beneficial properties, nonetheless, have been capped by worries over demand as main economies proceed to grapple with excessive rates of interest geared toward curbing sticky inflation.
The Paris-based company has predicted oil demand will peak by 2030 because the world shifts to cleaner power, however Opec expects oil use to maintain rising for the following 20 years.
On the provision facet, IEA raised its projection for 2024, estimating provide will develop by 1.7 million bpd versus its earlier forecast of 1.5 million bpd. The company cited provide from producers outdoors Opec and allies that make up the broader Opec+ group of producers.
The IEA now expects provide to develop to a document excessive of about 103.8 million bpd, nearly totally pushed by producers outdoors Opec+, together with the US, Brazil and Guyana.
Given the sturdy outlook for provide outdoors Opec+, the IEA expects a slight construct in inventories within the first quarter, it mentioned.
[ad_2]
Source link