IEA Trims Oil Demand Forecast Amid Ongoing Conflict
The International Energy Agency (IEA) has revised its forecast for oil demand in 2024, predicting a sharper decline than previously anticipated. The agency now expects global oil demand to fall by 2.5 million barrels per day, which would be the steepest annual average decline since 2020.
The IEA attributed this downward revision to ongoing conflict and tightening availability of oil supplies. As a result, Brent crude prices have risen above $100 for the first time in July, hovering near $104 on Friday.
The agency also cut its outlook for global supply by 1.3 million barrels per day, taking the expected annual loss to 5.7 million barrels per day. It now expects the return of a sustained surplus to be delayed until 2027, rather than next year as previously anticipated.