IEA cuts oil demand growth forecast by 1.4L barrels/day
New Delhi, May 15
The International Energy Agency (IEA) has scaled down its forecast for the growth in oil demand during 2024 as it expects the consumption of fuels to come down amid the economic slowdown in the advanced OECD countries.
The Paris-based agency has reduced its oil demand forecast for the year by 140,000 barrels per day (bpd) to 1.1 million bpd. The IEA in its monthly oil report said its lower growth outlook for 2024 was on account of the slowdown in industrial activity and a mild winter leading to a reduction in fuel consumption.
It also mentioned the fall in share of diesel cars which was leading to lower fuel sales. “Combined with weak diesel deliveries in the US at the start of the year, this was enough to tip OECD oil demand in the first quarter back into contraction,” the IEA said. However, the Organisation of the Petroleum Exporting Countries (OPEC) expects the world oil demand to increase by 2.25 million barrels per day (bpd) in 2024. The projection would enable the oil cartel to go in for higher prices. —IANS
Cites slowdown, fall in diesel car sales
The International Energy Agency has cited slowdown in industrial activity, a mild winter leading and a fall in share of diesel cars as reasons for reduction in fuel consumption
