PARIS (AFP) – World oil supply will continue to rise this year, the International Energy Agency (IEA)said yesterday, as it predicted that demand growth would continue a downward slide throughout 2024.
The Paris-based IEA, which advises oil-consuming nations, said it expects increase in global oil demand to halve from 2.3 million barrels per day (bpd) last year to 1.2 million bpd in 2024.
It cited economic headwinds, tighter efficiency standards and growth in electric vehicles for the slowing demand growth, which was sharply down in the last three months of 2023.
Much of the slowing demand has mirrored falling demand for post-pandemic travel demand in China, which drives much of the world’s oil demand growth.
The pace of demand growth will continue to be led by China through 2024, the IEA said, with the world’s second-largest economy accounting for almost 60 per cent of this year’s oil demand growth.
Meanwhile, the world’s oil supply will continue to grow due to “record-setting output” from the United States, Brazil, Guyana and Canada, it said. This high production will lead to a new high in the world’s oil supply this year, it said.
