Oil & Gas Journal (August 15, 2023) – World oil demand is increasing to record highs, boosted by robust summer air travel, increased utilization of oil in power generation, and surging Chinese petrochemical activity, the International Energy Agency (IEA) said its August Oil Market Report.
Global oil demand reached an all-time high of 103 million b/d in June, and there is potential for another peak in August. Following a period of subdued performance, demand from OECD countries was adjusted upwards for both May and June with overall consumption returning to growth in second-quarter 2023 after two quarters of contraction. Chinese demand was also stronger than expected, reaching new highs despite persistent concerns over the state of its economy.
According to IEA’s latest forecast, global oil demand is set to expand by 2.2 million b/d to 102.2 million b/d in 2023, with China accounting for more than 70% of growth. With the post-pandemic rebound slowing, and as lackluster economic conditions, tighter efficiency standards, and new electric vehicles weigh on use, growth is forecast to slow to 1 million b/d in 2024.
IEA: World Oil Demand Scaling To Record Highs
