According to the IEA, China will account for 70% of global gains due to increased petrochemical use. However, the agency stated that “China’s widely anticipated reopening has so far failed to extend beyond travel and services, with its economic recovery losing steam after the bounce earlier in the year.”

In 2024, global growth is expected to slow to 1.1 million barrels per day. The global supply is anticipated to rise by 1.2 million barrels per day in the same year, hitting a new high of 102.8 million. According to the International Energy Agency, all of this growth will be driven by countries that are not members of the Organization of Petroleum Exporting Countries.

“World oil demand is coming under pressure from the challenging economic environment, not least because of the dramatic tightening of monetary policy in many advanced and developing countries over the past 12 months,” the report said.

The IEA noted that oil demand growth will “slow almost to a halt in the coming years” after 2026 as a result of a decrease in the use of oil as transportation fuels.