As oil consumption rising, it is expected that the demand for oil will growth

May 29, 2024, 11:58 AM

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Recent data shows a surprising increase in oil consumption in India and the Middle East. The International Energy Agency (IEA) predicts a global demand rise of 2.3 million barrels per day this year, with further growth anticipated in 2023. However, OPEC warns of uncertainties due to slowing global economic growth. Stay informed on oil market trends.

In recent weeks, the oil consumption in India and the Middle East has risen unexpectedly, International Energy Agency (IEA) based on the consumption data, predict that the demand for oil will increase globally this and next year.

In its December oil market report, IEA said that although it is expected that the daily global oil demand in the fourth quarter of this year will decrease by 110000 barrels from the same period in 2021, the recent oil consumption data in non OECD regions show that the demand is more flexible than previously expected.

IEA currently estimate that the global oil demand will increase by 2.3 million barrels per day this year, 140000 barrels per day higher than the growth expected in the November report. It is estimated that the global oil demand will increase by 1.7 million barrels per day in 2023, an average increase of 100000 barrels per day compared with the estimate reported in November. IEA said that the global oil demand will reach 101.6 million barrels per day next year.

In terms of supply, IEA estimates that the global oil supply will decrease by 190000 barrels to 101.7 million barrels per day in November, breaking the five month upward trend, because Saudi Arabia and other Gulf oil producing countries have reduced production.

In the monthly report released by OPEC on Tuesday, the growth of global oil demand is expected to remain unchanged, with a daily increase of 2.5 million barrels this year and 2.2 million barrels next year. However, OPEC warned: "As approaching the end of 2022, the recent slowdown in global economic growth and its far-reaching impact are becoming quite obvious. It is expected that there will still have many uncertainties in 2023, which requires vigilance and caution."