IEA reiterates global oil demand growth outlook, warns of oversupply

The International Energy Agency (IEA) maintained its forecasts for global oil demand growth in 2024 and 2025 but warned of a potential oversupply due to the OPEC+ plan to ramp up oil supplies. 

In its monthly report issued today, Aug. 13, the energy watchdog said global oil demand is likely to grow slightly by less than one million barrels per day (bpd), or 1%, in 2024 and 2025, given the weak global economic performance and the rising trend towards electric vehicles.  

These estimates are in line with IEA’s expectations in last month’s report, which had indicated that global oil inventories are currently declining due to peak seasonal demand during the summer. However, they are seen to start stabilizing in Q4 of this year. 

Oil supplies are poised to witness a surplus if the OPEC+ alliance moves forward with plans to abandon some voluntary production cuts by the start of next October.