Global Oil Demand Growth to Slow Further

IEA Revises Forecast

Demand to Rise by Less Than a Million Barrels a Day This Year and Next

The International Energy Agency (IEA) has revised down its forecast for global oil demand growth this year and next, citing slowing economic growth and the impact of the war in Ukraine. In its latest Oil Market Report, the IEA said that global oil demand is now expected to grow by 950,000 barrels per day (bpd) in 2023, down 300,000 bpd from its previous forecast. For 2024, demand growth is expected to slow to just under 1 million bpd. The IEA said that the slowdown in demand growth is due to a number of factors, including the economic slowdown in China, the war in Ukraine, and high inflation. * **China's economy is expected to grow by only 5.2% this year**, down from 8.1% in 2022. This slowdown is due to a number of factors, including the government's zero-COVID policy, the property market crisis, and the global economic slowdown. * **The war in Ukraine is also having a significant impact on oil demand**. The war has led to a sharp increase in the price of oil, which is making it more expensive for consumers and businesses to use energy. The war has also disrupted global supply chains, which has made it more difficult for oil companies to get oil to market. * **High inflation is also weighing on oil demand**. Inflation is making it more expensive for consumers to buy goods and services, which is leaving them with less money to spend on energy. The IEA said that the slowdown in demand growth is likely to have a significant impact on oil prices. The IEA said that it now expects oil prices to average $92 per barrel in 2023, down from its previous forecast of $99 per barrel. The IEA's forecast is in line with other forecasts from major oil companies and financial institutions. Goldman Sachs recently said that it expects oil prices to average $90 per barrel in 2023. The slowdown in oil demand growth is a sign that the global economy is slowing down. The slowdown is likely to continue in the coming months, as the war in Ukraine and high inflation continue to weigh on economic activity.