Smallest increase since the end of 2022: Global oil demand is falling while stocks are rising. The increasing supply from a major raw materials power could further exacerbate the imbalance.
Growth in global oil demand slowed in the second quarter. The weakening Chinese economy is dampening oil demand, according to the International Energy Agency’s (IEA) recently released monthly report. Global consumption rose by just 710,000 barrels per day in the second quarter. This is the smallest increase since the end of 2022.
“Global oil demand continues to slow,” said the Paris-based agency. “Chinese consumption is shrinking as the country’s post-pandemic economic recovery comes to an end.”
For 2024 and 2025, the IEA expects global demand to rise by less than one million barrels per day. Weakening fuel consumption is offset by increasing supply from the US and other parts of the Americas. As a result, observed global stocks rose for four months up to May to their highest level since mid-2021.
Source: Stern
