IEA Slashes Global Oil Demand Forecast Amid Higher Prices

The International Energy Agency (IEA) has revised its forecast for global oil demand, stating it will rise more slowly than expected this year. According to the agency's monthly oil report, world oil demand is set to increase by 850,000 barrels per day (bpd), down from last month's projection of 930,000 bpd.

The IEA attributes the slower growth in demand to 'economic uncertainties and higher oil prices'. The agency also notes that supply has risen faster than demand due to output hikes from OPEC+ and other producers. In fact, OPEC+ pumped 43.3 million bpd of crude in January, down 160,000 bpd from December.

Despite the slower growth in demand, the IEA still projects a sizeable global oil supply surplus in 2026, with a surplus of 3.73 million bpd expected. This would equal almost 4% of world demand and is larger than other forecasts.