According to the IEA, global oil demand increased by less than 1 million bpd this year, after rising nearly 2 million bpd last year.

“The sub-1 million bpd growth pace for both years reflects below-par global economic conditions with the post-pandemic release of pent-up demand now complete,” it said.

According to the IEA, “current balances suggest that even if the OPEC+ cuts remain in place, global supply will exceed demand by more than 1 million bpd next year,” driven by the United States, Canada, Guyana, and Argentina.

The Organization of Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth this year and next, highlighting weakness in China, India, and other regions, marking OPEC’s fourth consecutive downward revision in the 2024 outlook.