The International Energy Agency (IEA) has reported a significant slowdown in global oil-demand growth towards the end of last year. This trend is expected to continue and weaken further, indicating a return to prepandemic patterns.
According to the IEA’s monthly report, growth is projected to ease to 1.2 million barrels a day by 2024, compared to the 2.3 million barrels a day recorded last year. This will result in an average daily demand of 103 million barrels. Previously, the estimate for demand growth in 2024 stood at 1.1 million barrels per day.
In the fourth quarter of last year, the growth rate dropped to 1.7 million barrels a day from 2.8 million barrels a day in the third quarter. This decline was primarily driven by a decrease in travel demand in China after the initial post-pandemic surge.
Despite the slowdown, China is still expected to contribute almost 60% of global demand growth this year. The expansion of the petrochemical sector in China will fuel this growth, as highlighted by the IEA.
It will be interesting to observe how global oil demand evolves in the coming years, especially considering the ongoing changes in travel patterns and energy consumption worldwide.
