Due to the conclusion of China’s post-COVID economic recovery, the International Energy Agency has maintained its 970,000 barrel per day increase estimate for world oil consumption in 2024.
However, the energy department reduced its growth estimate from 980,000 bpd to 950,000 bpd by 2025.
The research tank noted that the physical market is becoming more constrained globally as a result of production curbs imposed by OPEC+, the Organization of the Petroleum Exporting Countries and its allies.
Since 2020, OPEC+ has significantly reduced supply in order to preserve market stability. Members of the alliance are presently reducing their output by 5.86 million bpd, or around 5.7% of the world’s demand.
The oil-producers’ association decided in July to begin gradually reducing its steep oil output limits in 2025 and to continue them for the majority of 2024.
“From last month’s study, our prognosis for global oil consumption remains basically the same, with growth estimated at little less than 1 million bpd in 2024 and 2025. But there is a noticeable change in the drivers, according to IEA.
The statement said, “A decline in industrial inputs, particularly for the petrochemical industry, caused China’s oil consumption to decline for a third straight month in June. July saw more decline, according to preliminary trade data, with crude oil imports falling to their lowest level since the strict lockdowns of September 2022.
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