IEA: Oil demand set to rise significantly thanks to China and interest in air travel

The return of air travel and economic growth in China following the lifting of pandemic restrictions will significantly boost global oil demand. The International Energy Agency (IEA) forecast this today in its regular monthly report on the oil market.

„Global oil demand growth got off to a slow start in 2023, but the year is expected to end with a bang,“ the IEA said.

„A recovery in jet fuel consumption and a rebound in China will drive an overall increase of 3.2 million barrels per day from the first to the fourth quarter. This is the largest relative year-on-year increase since 2010,“ the IEA said.

The agency kept its forecasts for demand growth in China and worldwide relatively unchanged from the previous month. China is expected to consume about 16 million barrels of oil per day this year, while global consumption is forecast at around 102 million barrels per day. Supply continues to exceed demand, but the market is expected to balance around mid-year, driven by China and developing countries.