The International Energy Agency said in its monthly report on the market: Oil Demand increased by 800,000 barrels per day in the first six months of 2024, compared to 2.3 million barrels per day during the same period in 2023.
The Paris-based agency explained: “The main driver of this decline is the rapid slowdown in China’s economy, which has fallen Consumption On an annual basis for the fourth consecutive month in July.”
It is China Among the world’s largest oil consumers and importers, the world’s second-largest economy is struggling amid weak consumer spending and a sector crisis. Real Estate Continuing and high unemployment.
As I was martyred International Energy Agency As the country shifts away from oil in favor of alternative energy.
The agency said that the rise in electric car sales is reducing demand for fuel, while the development of a high-speed rail network is constraining the growth of domestic air travel.
Outside China, demand for oil is weak at best, the agency added.
For the full year, the agency said: “Global oil demand in 2024 is expected to grow by 70,000 barrels per day, or about 7.2 percent, to 900,000 barrels per day. This would bring total demand to about 103 million barrels per day.”
The agency currently expects demand in China to grow by only about 180,000 barrels per day in 2024.
The International Energy Agency also kept its forecast for demand growth in 2025 unchanged from last month at around 950,000 barrels per day but indicated that the global oil market could see a surplus next year if the OPEC+ group goes ahead with its plan to gradually roll back voluntary production cuts.
Prices have declined. Oil This year due to concerns about the global economic outlook.
This week, the price of crude fell. Brent Below $70 a barrel for the first time since December 2021.
The price drop has prompted major members of the OPEC+ alliance, including Saudi Arabia and Russia, to postpone a planned production increase and instead extend voluntary supply cuts until the end of November.
The International Energy Agency said the postponement gives OPEC+ “Some time to assess the demand outlook for next year” as well as the impact of production disruptions in Libya.
But with supplies from non-OPEC+ countries rising faster than overall demand, the group “could face a large surplus, even if its additional cuts remain in place.”
