Oil demand growth continued its slowing trend in the second quarter of this year, registering an increase of 710,000 barrels per day, the lowest since the second quarter of 2022, the International Energy Agency announced on Thursday (IEA), reports EFE.
In its report on the global oil market, the IEA attributes this lower growth to the April-May contraction in consumption in China – where the post-pandemic recovery appears to have lost steam – as well as moderate global economic growth, electrification and efficiency measures energy, according to Agerpres.
The IEA maintains its forecasts of growth in world demand by 970,000 barrels per day for this year (to 103 million barrels per day) and by 980,000 in 2025 (to 105 million b/d).
Instead, supply continues to grow at a higher level than demand, with an increase of 910,00 barrels per day in the second quarter, mainly due to the boost in the extraction in the United States.
The IEA forecasts a further increase in supply of 770,000 barrels per day in the third quarter, with the largest increase (600,000 b/d) coming from countries outside the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
Oil and derivatives stocks advanced by 23.9 million barrels in May, being the fourth consecutive month of growth, reaching the highest level since August 2021.
As for prices, they recorded “a solid recovery” in June, so that Brent oil rose by 7 dollars per barrel, up to 87 dollars, after starting the month at the lowest level in the last six months (75, 61 dollars a barrel). The increase is primarily due to the increase in geopolitical risks, following the intensification of hostilities between Israel and Hezbollah, as well as the continuation of Houthi attacks on cargo ships in the Red Sea, which forced many oil tankers to bypass the African continent.
The OPEC+ announcement that the gradual withdrawal of voluntary production cuts “will be subject to market conditions” also had an influence, the report states.
The arrival of summer in the Northern Hemisphere, with higher consumption for holiday travel by air and car, adds some pressure to the market, although the IEA report predicts “cooler trends” in the oil market after this period, especially due to weakness the world economy.