IEA keeps 2024 demand growth forecast largely steady at 970,000 bpd


content provided with permission by FXStreet

In
its
monthly oil market
report
published
on
Thursday,
the
International
Energy
Agency
(IEA) maintained
the
2024
global
oil
demand
growth forecast at
970,000
barrels
per
day
(bpd).

Additional
takeaways

2025
global
supply
growth
will
reach
1.8
mln
bpd,
with
US,
Canada,
Guyana
and
Brazil
leading
gains.

Oil
supply
growth
in
2024
to
hit
770,000
bpd,
boosting
oil
supply
to
a
record
103
mln
bpd.

Sees
Q3
call
on
OPEC+
crude
800,000
bpd
higher
than
June
output.

Subpar
economic
growth,
greater
efficiencies
and
vehicle
electrification
to
hit
demand
in
2024,
2025.

China
accounted
for
70%
of
global
demand
gains
in
2023
but
just
around
40%
in
2024
and
2025.

Chinese
consumption
contracted
as
post-pandemic
rebound
has
run
its
course.

Oil
demand
growth
slowed
to
710,000
in
2024,
the
lowest
quarterly
increase
in
over
a
year.

Lowers
2025
oil
demand
growth
outlook
by
50,000
bpd
to
980,000
bpd.

Market
reaction

At
the
time
of
writing,

WTI

is
holding
steady
at
around
$81.50.

WTI
Oil
FAQs

WTI
Oil
is
a
type
of
Crude
Oil
sold
on
international
markets.
The
WTI
stands
for
West
Texas
Intermediate,
one
of
three
major
types
including
Brent
and
Dubai
Crude.
WTI
is
also
referred
to
as
“light”
and
“sweet”
because
of
its
relatively
low
gravity
and
sulfur
content
respectively.
It
is
considered
a
high
quality
Oil
that
is
easily
refined.
It
is
sourced
in
the
United
States
and
distributed
via
the
Cushing
hub,
which
is
considered
“The
Pipeline
Crossroads
of
the
World”.
It
is
a
benchmark
for
the
Oil
market
and
WTI
price
is
frequently
quoted
in
the
media.

Like
all
assets,
supply
and
demand
are
the
key
drivers
of
WTI
Oil
price.
As
such,
global
growth
can
be
a
driver
of
increased
demand
and
vice
versa
for
weak
global
growth.
Political
instability,
wars,
and
sanctions
can
disrupt
supply
and
impact
prices.
The
decisions
of
OPEC,
a
group
of
major
Oil-producing
countries,
is
another
key
driver
of
price.
The
value
of
the
US
Dollar
influences
the
price
of
WTI
Crude
Oil,
since
Oil
is
predominantly
traded
in
US
Dollars,
thus
a
weaker
US
Dollar
can
make
Oil
more
affordable
and
vice
versa.

The
weekly
Oil
inventory
reports
published
by
the
American
Petroleum
Institute
(API)
and
the
Energy
Information
Agency
(EIA)
impact
the
price
of
WTI
Oil.
Changes
in
inventories
reflect
fluctuating
supply
and
demand.
If
the
data
shows
a
drop
in
inventories
it
can
indicate
increased
demand,
pushing
up
Oil
price.
Higher
inventories
can
reflect
increased
supply,
pushing
down
prices.
API’s
report
is
published
every
Tuesday
and
EIA’s
the
day
after.
Their
results
are
usually
similar,
falling
within
1%
of
each
other
75%
of
the
time.
The
EIA
data
is
considered
more
reliable,
since
it
is
a
government
agency.

OPEC
(Organization
of
the
Petroleum
Exporting
Countries)
is
a
group
of
13
Oil-producing
nations
who
collectively
decide
production
quotas
for
member
countries
at
twice-yearly
meetings.
Their
decisions
often
impact
WTI
Oil
prices.
When
OPEC
decides
to
lower
quotas,
it
can
tighten
supply,
pushing
up
Oil
prices.
When
OPEC
increases
production,
it
has
the
opposite
effect.
OPEC+
refers
to
an
expanded
group
that
includes
ten
extra
non-OPEC
members,
the
most
notable
of
which
is
Russia.