IEA cuts 2024 global oil demand growth forecast on softer economic outlook

• 2024 global oil demand growth forecast cut to 880k bpd (previously 1 mil bpd)
• Cites harsher economic conditions and energy efficiency improvements
• Recent oil price pullback reflects demand destruction
• 2023 global oil demand growth forecast bumped up to 2.3 mil bpd (previously 2.2 mil bpd)
• Cites less worse conditions in China, India, and Brazil

IEA also notes that the only thing keeping the oil market in a deficit right now is OPEC+ voluntary cuts. And that if those cuts are unwound, it could lead to a shift in balance to a surplus come January next year. That is a risk to watch out for in the bigger picture for oil prices.

This article was written by Justin Low at www.forexlive.com.

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