The International Energy Agency (IEA) has announced a downward revision of its forecast for oil demand growth for the current year, indicating that the expected increase will be lower than previously estimated. According to the organization, this is due to the recovery process following the pandemic and the surge in the adoption of electric vehicles, factors that negatively influence consumption.
In detail, oil demand growth is now expected at 1.2 million barrels per day, a reduction from the 1.3 million barrels per day initially forecast. The body expects average daily consumption to be around 103.2 million barrels.
Furthermore, the IEA noted that demand has shown signs of slowing since the start of the year, rising by just 1.6 million barrels per day in the first quarter, which was below expectations in the first quarter. due to a weak distribution in Organization for Economic Co-operation and Development (OECD) countries. Phenomena such as an unusually warm climate have helped reduce the need for heating, while a decline in industrial production in advanced economies has affected demand for industrial fuels.
Looking ahead, oil demand growth is expected to slow further to 1.1 million barrels per day in 2025, with total consumption expected to average 104.3 million barrels per day. This slowdown is mainly attributed to the post-pandemic normalization of growth levels and the effects of the energy crisis resulting from the Russian invasion of Ukraine.