The International Energy Agency expects oil demand to rise by about 2.4% in 2024

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The International Energy Agency expects oil demand to rise by about 2.4% in 2024

On Tuesday, the International Energy Agency increased its projection for global oil demand growth for the current and subsequent years despite the expected slowdown in economic growth across most major economies.

The agency’s report raised its expectations for global oil demand growth in 2023 to 2.4 million barrels per day, up from 2.3 million per day.

The agency raised its expectations for global oil demand growth in 2024 to 930,000 barrels per day, up from 880,000 per day.

The Paris-based agency reported that oil demand was supported this year by solid US deliveries and record demand from China in September.

Support for 2024 expectations rose due to lower interest rates and crude prices.

Meanwhile, the agency confirmed that the escalation in Gaza did not have a tangible impact on energy supply flows.

The Organization of the Petroleum Exporting Countries (OPEC) has revised its forecast for global oil demand growth this year to 2.5 million barrels per day, an increase of around 100,000 barrels compared to last month’s estimates. The increase in Chinese demand during the third quarter has contributed to this upward revision.

In its monthly report issued on Monday, the organization maintained its expectations for global oil demand growth in 2024 at 2.2 million barrels per day.

In its October report, OPEC predicted that global oil demand growth would stay steady at 2.4 million barrels per day in 2023, consistent with September’s forecast.