Economy

IEA Downgrades 2025 Oil Demand Outlook Amid Changing Global Dynamics

Global Oil Demand Forecast Adjusted

The International Energy Agency (IEA) has revised its global oil demand growth forecast for 2025 downwards to 1.05 million barrels per day (bpd), a decrease from the previously anticipated 1.1 million bpd. This adjustment reflects the evolving global energy landscape and its impact on oil consumption patterns.

Factors Influencing the Demand

The IEA highlighted several factors that contributed to a strong annual growth of 1.5 million bpd in global oil demand during the fourth quarter of 2024. Among these were lower fuel prices, colder weather conditions across the Northern Hemisphere, and an abundance of petrochemical feedstocks, all of which spurred consumption.

Supply Outlook for 2025

Looking ahead, the organization anticipates a significant increase in global oil supply by 1.8 million bpd to 104.7 million bpd in 2025. This projection marks a substantial rise from the 660,000 bpd increase observed in 2024, signaling a robust expansion in global oil production capabilities.