Paris: The International Energy Agency (IEA), headquartered in Paris, maintained on Tuesday that its forecast for oil demand growth this year at 970,000 barrels per day. However, it revised its forecast for 2025, from 980,000 barrels to 950,000 barrels a day, attributing this change to the impact of weaker Chinese consumption on economic growth.
In its monthly report, the IEA stated that the end of the post-COVID-19 economic recovery in China has limited global oil demand. However, advanced economies, particularly the United States which consumes a third of the world's gasoline have offset this loss.
The report also noted that the US summer driving season is expected to be the strongest since the pandemic, against the backdrop of supply cuts by the Organization of the Petroleum Exporting Countries and non-OPEC participants (OPEC+).
The Agency mentioned that oil is currently struggling to meet peak summer demand, resulting in a market deficit.
