Growth in oil demand set to stop by year- end, IEA says

Growth in global oil demand is set to grind to a halt in the fourth quarter of this year as an economic slowdown deepens, the International Energy Agency ( IEA) said on Wednesday, but added it would resume strongly in 2023.

The outlook preserves a relatively bullish view for robust growth next year despite economic headwinds, built on the expectation that China’s Covid- 19 lockdowns will ease while growth in air travel will boost demand for jet fuel. “Global oil demand remains under pressure from the faltering Chinese economy and an ongoing slowdown in OECD economies,” the Paris- based energy watchdog said in its monthly oil report. The IEA cut its forecast for demand growth this year by 110,000 barrels a day to 2MMbbl/ day and kept its 2023 growth forecast of 2.1MMbbl/ day. Rich countries in the Organisation for Economic Cooperation and Development accounted for most of the rise in demand this year, while countries outside the group especially China will underpin growth next year provided Beijing relaxes its Covid- 19 curbs.