Global Oil Demand Growth Forecast

The International Energy Agency (IEA) has released its monthly report, projecting that global oil demand will increase by an average of 1.1 million barrels per day (bpd) in 2025. This marks a rise from the 870,000 bpd growth observed in 2024, indicating a slight upward revision from previous forecasts.

China Leads Demand Growth

Despite a decrease in its contribution to global demand growth to 19%, China is expected to be the largest contributor to the increase in oil demand by 2025. Additionally, India and Other Asia are projected to add a combined 500,000 bpd to global demand growth.

Global Oil Supply on the Rise

The report also highlights that global oil supply, which was at 102.7 million bpd in 2024, is anticipated to grow by 1.6 million bpd to 104.5 million bpd this year. The IEA notes that while US sanctions on Russia and Iran have caused market disruptions, they have not significantly impacted global oil supply. Iranian crude oil exports have seen only a marginal decrease, and Russian oil flows remain largely unaffected.