Oil demand will hit a record high this year, the International Energy Agency (IEA) said today, but economic headwinds and rising interest rates mean growth will be slightly slower than expected.
Although demand is expected to reach 102.1 million bpd, the agency cut its demand growth forecast for the first time this year, by 220,000 bpd to 2.2 million bpd. “The challenging economic environment is weighing on global oil demand, not least due to the sharp tightening of monetary policy in many developed and developing countries,” the IEA said in its monthly oil report.
Demand in developed countries, especially Europe, remained subdued, the IEA added. Oil demand growth will halve to 1.1 million bpd next year, reflecting increased vehicle electrification and energy efficiency.
