IEA lowers 2024 oil demand forecast amid global slowdown

New Delhi: International Energy Agency (IEA) has scaled down its forecast for the growth in oil demand during 2024 as it expects the consumption of fuels to come down amid the economic slowdown in the advanced OECD countries. Organization for Economic Cooperation and Development (OECD) represents 37 countries. The Paris-based agency has reduced its oil demand forecast for the year by 140,000 barrels per day (bpd) to 1.1 million bpd.

The IEA in its monthly oil report said its lower growth outlook for 2024 was on account of the slowdown in industrial activity and a mild winter leading to a reduction in fuel consumption. It also mentioned the fall in share of diesel cars which was leading to lower fuel sales.

“Combined with weak diesel deliveries in the United States at the start of the year, this was enough to tip OECD oil demand in the first quarter back into contraction,” the IEA said.