Daily Management Review

IEA head forecasts slowdown in global oil demand growth in 2024


According to Fatih Birol, president of the International Energy Agency (IEA), supply build-up by several nations will assist satisfy demand and keep prices in line, therefore the situation in the global oil market is likely to stay favorable in 2024.

2024 would see an increase in global oil demand of 1.2–1.3 million barrels per day (bpd), a significantly slower rate than in the previous year as economic growth slows in China and many other regions of the world, Birol noted.

The January IEA data shows that in 2023 there was a 2.254 million barrel increase in the world oil demand.

According to Birol, rising production in nations like the US, Canada, Brazil, and Guyana will easily balance the rise in demand.

"This production growth will be more than sufficient to meet global oil demand," the head of the IEA stated. "Thus, through 2024, we may anticipate a very stable oil market environment and little price fluctuations barring significant geopolitical upheavals or extreme weather catastrophes."

In an effort to reduce the world's influence on climate change, Birol restated the IEA's prediction that by the end of this decade, oil demand worldwide will plateau.

source: bloomberg.com