The International Energy Agency (IEA) revised its forecast for oil demand growth in 2024, highlighting a growing divergence with the Organization of the Petroleum Exporting Countries (OPEC) over global oil demand projections. IEA adjusted its 2024 growth outlook downward by 1,40,000 barrels per day (bpd), bringing the new estimate to 1.1 million bpd.
The adjustment was attributed mainly to weak demand in developed OECD countries. In contrast, OPEC has maintained its projection that global oil demand will increase by 2.25 million bpd in 2024. The significant difference between the two forecasts stems partly from differing perspectives on the speed of the global shift towards cleaner energy sources.
The IEA’s latest monthly report cites reduced industrial activity and a mild winter, which have decreased gasoil consumption, especially in Europe. This decline is further compounded by the decreasing prevalence of diesel vehicles in the region.
As reported by Deccan Herald, for 2025, IEA has slightly raised its oil demand growth forecast to 1.2 million bpd, which now surpasses its projection for the current year. Meanwhile, OPEC anticipates a growth in oil demand of 1.85 million bpd for the next year.
