SM - What Are the Key Takeaways From IEA's Oil Market Report? | Benzinga
The International Energy Agency (IEA) has lowered its oil demand growth forecast for 2024 by 140,000 barrels per day (bpd), citing weak consumption in developed economies. This adjustment takes the expected growth down to 1.1 million bpd.
Factors Behind the Revised Projections
The IEA's latest "Oil Market Report" attributes the downward revision to several key factors. Firstly, weak industrial activity in developed countries has led to a reduction in gasoil (a by-product of petroleum used as fuel) consumption. Additionally, a mild winter in Europe further dampened demand. The decline has been compounded by Europe's transition away from diesel vehicles.
Weak diesel deliveries in the United States also contributed to the overall reduction in OECD oil demand in the first quarter. The IEA noted that while demand in developed nations suffered, resilient consumption in non-OECD countries, particularly China, provided some offset.
Comparing IEA and OPEC Forecasts
The IEA's cautious outlook stands in stark contrast to the more optimistic projections from the Organization of the Petroleum Exporting Countries (OPEC). While the IEA forecasts modest growth of 1.1 million bpd for 2024, OPEC expects a robust increase of 2.25 million bpd. This 1.15 million bpd discrepancy underscores divergent views on global economic resilience and oil demand dynamics.
OPEC maintains its bullish stance, supported by a strong global economy and ...