According to a report on the oil market released by the International Energy Agency (IEA) on Thursday, it is expected that the growth rate of global oil demand will slow down to less than 1 million barrels per day in 2024 and 2025.

The IEA monthly report shows that the year-on-year growth rate of global oil demand in the second quarter of 2024 slowed down to 710,000 barrels per day, the slowest quarterly growth rate in over a year.

The IEA stated, "Last year, China accounted for 70% of global demand growth, and by 2024 and 2025, this proportion will decrease to around 40%

The IEA predicts that global oil demand will increase by 970,000 barrels per day this year, which is basically stable compared to last month's estimate. It is expected to increase by 980,000 barrels per day next year.

The IEA added that the post pandemic global economic rebound is slowing down, and poor economic growth, improved energy efficiency, and the popularity of electric vehicles will hinder the growth of oil demand in the next two years.

The report shows that by 2024, global oil supply is expected to increase by an average of 770,000 barrels per day, which will boost crude oil supply to a record high of 103 million barrels per day. Non OPEC production is expected to increase by 1.5 million barrels per day, while OPEC production is expected to decrease by 740,000 barrels per day year-on-year while maintaining the current voluntary production reduction policy.

Global oil supply is expected to increase by 1.8 million barrels per day in 2025, with non OPEC countries such as the United States, Canada, and Guyana driving supply growth for the third consecutive year, with an increase of 1.5 million barrels per day.

The IEA predicts that global demand for OPEC crude oil in the third and fourth quarters of this year will be 42.2 million barrels per day and 41.8 million barrels per day, respectively, which is about 800,000 barrels per day and 400,000 barrels per day higher than their June production. As for next year, the demand for OPEC crude oil will decrease to 41.1 million barrels per day, citing the continued slowdown in demand growth and the continued expansion of production from non OPEC countries.

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