Oil & Gas

Oil industry executives are witnessing stronger-than-expected growth in oil demand compared to the International Energy Agency's (IEA) projections. This uptick is driven by sluggish electric vehicle adoption and a thriving US economy, prompting a revision of forecasts. Additionally, the longer shipping route around Africa, chosen in response to Red Sea attacks, is further boosting global oil demand.

During the CERAWeek conference, industry leaders emphasized that global oil demand is outpacing forecasts, with robust growth seen across all economies. They generally view the IEA's demand growth projections for the year as overly conservative.

In its recent assessment, the IEA raised its 2024 outlook for global oil demand growth by 110,000 barrels per day (bpd) from the previous month's report. The agency now anticipates a 1.3 million bpd growth in 2024, up from the 1.2 million bpd expected earlier. Despite this adjustment, the IEA's outlook on oil consumption remains much more cautious compared to OPEC's projections.