The International Energy Agency (IEA) released its monthly oil market report, maintaining its global oil demand growth forecast.
Key Highlights
2024 world oil demand growth forecast remains at 970k barrels per day (bpd).
2025 world oil demand growth forecast now projected at 950k bpd (previously 980k bpd).
Chinese oil demand has declined for the third consecutive month.
Sluggish growth in China is significantly impacting global gains.
OPEC+ cuts are tightening physical markets.
Potential supply deficit as US summer driving season expected to be strongest since the pandemic.
Market Response
WTI is holding steady above $78 despite the report’s findings.
Analysis
The IEA report provides insights into the current state of global oil demand and highlights the impact of factors such as Chinese demand trends and OPEC+ production cuts. The stability of WTI prices amidst these findings indicates market resilience. Investors should monitor geopolitical events, economic growth, and supply dynamics to make informed decisions in the oil market.