IEA cuts 2023 oil demand growth forecast due to macroeconomic headwinds

Pipscollector - In its latest oil market report published on Thursday, the International Energy Agency (IEA) reduced its 2023 oil demand growth estimate by 220,000 barrels per day (bpd) due to persistent macroeconomic headwinds.

Additional takeaways

Global oil demand set to rise by 2.2 mln bpd in 2023 to reach a record 102.1 mln bpd.

Global oil demand is set to rise seasonally by 1.6 mln bpd from 2Q23 to 3Q23.

Lower production from Saudi Arabia and other core OPEC+ members offset by Kazakhstan, Nigeria, US.

Demand growth in 2024 will slow to 1.1 mln bpd as vehicle electrification, greater efficiency take hold.

China will account for 70% of global oil demand gains.

China's economic recovery losing steam after bounce earlier in the year.

Russian oil exports in june fell 600,000 bpd to 7.3 mln bpd, lowest since March 2021.

China’s reopening has so far failed to extend beyond travel and services.

Market reaction

WTI pauses its rally just shy of the $76 mark following the IEA report. The US oil is currently trading at $75.72, up 0.12% on the day.

- Pipscollector -