Oil, IEA cuts 2025 demand estimates and mentions China

Oil IEA cuts 2025 demand estimates and mentions China

(Finance) – TheInternational Energy Agency (IEA) confirms its estimates of an increase in oil demand for the current year, while revising downwards its forecasts for 2025, citing the effect of a Chinese economy weaker on consumption. China is the world’s largest importer and second largest consumer of crude oil.

In the August monthly report, the increase in daily demand is expected at 970 thousand barrels this year, compared to 974 thousand in the previous report, while for 2025 it drops to +953 thousand against the +979 thousand previously estimated.

Even theOPECon the eve, revised downwards the estimates of demand growth, for 2024-2025, although higher than those announced by the IEA. The cartel estimates +2.1 million barrels per day for this year and +1.8 million for 2025.

“The weakness of Chinese growth, after a post-Covid rebound in 2023, now weighs significantly globally,” the Paris-based agency said in its monthly oil report, adding that for the time being, “supply is struggling to keep pace with peak summer demand, pushing the market into deficit.”

(Photo: © Aleksandr Prokopenko / 123RF)

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