IEA raises global oil demand growth forecast for next year

Shafaq News / The International Energy Agency (IEA) on Thursday raised its global oil demand growth forecast for next year despite an expected economic slowdown, citing an improvement in the outlook for the United States and lower oil prices.

Despite the upgrade, there is still a sizeable gap between the IEA, which represents industrialised countries, and producer group OPEC over 2024 demand prospects. The two have clashed in recent years over issues such as long-term demand and the need for investment in new supplies.

World consumption will rise by 1.1 million barrels per day(bpd) in 2024, the Paris-based IEA said in a monthly report, up 130,000 bpd from its previous forecast.

The revision reflects "a somewhat improved GDP outlook compared with last month's report," the IEA said. "This applies especially to the U.S. where a soft landing is coming into view."

"Falling oil prices act as an additional boost to oil consumption," it said.

Oil has weakened to a six-month low near $72 a barrel this week, even after OPEC+, which includes OPEC oil-exporting nations and allies such as Russia, on Nov. 30 announced a new round of production cuts for the first quarter of 2024.

Crude was up over $1 on Thursday after the IEA report was released to trade above $75.

The IEA said the extension of the OPEC+ supply cuts had done little to boost prices and that higher output in other nations would act as a headwind.

(Reuters)