Crude oil Weakening Chinese economy dampens demand for oil
Lowest increase since the end of 2022: global demand for oil is falling while supplies are rising. Rising supply from a major commodity power could exacerbate the imbalance.
11.07.2024, 11:55
SDA
Growth in global oil demand weakened in the second quarter. The weakening Chinese economy is dampening demand for oil, according to the recently published monthly report by the International Energy Agency (IEA). 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 the years 2024 and 2025, the IEA expects global demand to increase by less than one million barrels per day. Weakening fuel consumption will be offset by rising supply from the USA and other parts of America. As a result, observed global inventories had risen to their highest level since mid-2021 for four months up to May.
