IEA: Oil demand to hit a record this year, but fall short of initial expectations

Oil demand will reach a record level this year. However, weaker economic conditions and rising interest rates will make it lower than initially expected. The International Energy Agency (IEA) said this today in its regular monthly report on the market.

„Global oil demand is coming under pressure from a challenging economic environment, not least because of the dramatic tightening of monetary policy in many advanced and developing countries,“ the organization said.

For the first time this year, the agency cut its forecast for growth in global oil demand, by 220.000 barrels per day to 2,2 million barrels per day. Global demand is still expected to reach a record 102,1 million barrels per day.

China is expected to account for more than two-thirds of this year’s demand growth. Its economic recovery after the pandemic is expected to gather pace, especially in the latter part of the year, the IEA said. Demand in advanced economies, particularly Europe, remains subdued, it added.