Global Oil Demand Growth Slows Amid Economic Concerns
The International Energy Agency reports that global oil demand growth is at its slowest since the pandemic, primarily due to a slowdown in China's economy and a shift towards electric vehicles. Oil prices have dropped below $70 a barrel as a result of oversupply and weak demand forecasts.
| Score | Value |
|---|---|
Scale | 9 |
Novelty | 4 |
Positivity | 5 |
Reliability | 9 |
Actionability | 2 |
Society | 7 |
Journalism | 3 |
Highlights
- Global oil demand grew by 800,000 barrels a day in the first half of the year, the slowest increase since 2020.
- Oil prices have fallen below $70 a barrel for the first time since late 2021.
- China's oil demand has decreased for four consecutive months, with a drop of 280,000 barrels a day in July.
- The International Energy Agency (IEA) predicts that global oil demand will stop growing before the end of the decade.
- Non-OPEC+ oil production is expected to increase by 1.5 million barrels a day this year and next.
Perspectives
- The IEA expresses concern that global oil demand may plateau and eventually decline due to weak economic growth and a shift towards electric vehicles, particularly in China, which has historically driven demand growth. [4][6][7]
- OPEC+ faces challenges as non-OPEC production is set to exceed demand growth, potentially leading to a significant surplus in the market, despite their efforts to manage supply. [5][6][7]