Raw materials - IEA: Chinese economy's weak performance dampens oil demand
The global oil demand growth has slowed down in the second quarter. The sluggish Chinese economy is dampening the oil demand, according to the latest monthly report of the International Energy Agency (IEA) based in Paris. The global consumption increased only by 710,000 barrels per day. This is the smallest increase since the end of 2022.
"The global oil demand is slowing down further", the Agency stated. "The Chinese consumption is shrinking, as the economic recovery of the country from the pandemic is unfolding."
According to the IEA, the global demand is expected to grow by less than one million barrels per day in the years 2024 and 2025. The sluggish fuel consumption is facing increasing supply from the USA and other parts of America. Consequently, observed global inventories have risen to their highest level since mid-2021 over the past four months, up to May.
"This decrease in global oil demand is primarily attributed to the raw material's reduced consumption in China, as mentioned by the IEA in Paris."
"The IEA forecasts that the demand for oil will increase by less than a million barrels per day in 2024 and 2025, largely due to the abundance of oil supply from countries like the USA."
