The Worldwide Power Company on Friday downgraded its forecast for 2024 oil demand progress, citing “exceptionally weak” OECD deliveries, a largely full post-Covid-19 rebound and an increasing electrical car fleet.
In its newest month-to-month oil market report, the IEA stated it had revised down its 2024 oil demand progress forecast by round 100,000 barrels per day (bpd) to 1.2 million bpd.
The worldwide vitality watchdog stated that it anticipated the tempo of enlargement to decelerate even additional to 1.1 million bpd subsequent yr “because the post-Covid 19 rebound has run its course.”
The IEA’s report comes amid a rebound in oil costs on elevated Center East tensions, with vitality market individuals intently monitoring the prospect of provide disruptions from the oil-producing area.
Iran, which is a member of the Group of the Petroleum Exporting International locations, has vowed to retaliate after it accused Israel of bombing its embassy within the Syrian capital of Damascus earlier this month.
The assault has ratcheted up tensions in a area already grappling with the continued Israel-Hamas warfare. Israel has not claimed duty for the assault.
Worldwide benchmark Brent crude futures with June supply traded 1% larger at $90.62 per barrel on Friday at 10:00 a.m. in London, whereas U.S. West Texas Intermediate futures with Might supply rose 1.2% to commerce at $86.07 per barrel.
“We’re seeing the surge in [electric vehicle] gross sales, particularly in China and in addition in Europe, actually taking into gasoline demand, but in addition in the US,” Toril Bosoni, head of oil trade and markets division on the IEA, instructed CNBC’s “Road Indicators Europe” on Friday.
“There was plenty of speak about gross sales not rising as a lot as perhaps was anticipated, however EV gross sales and elevated gasoline efficiencies within the automotive fleet is reducing gasoline demand, a minimum of in superior economies and notably in China.”
An oil pumpjack is proven close to the Callon Petroleum neighborhood on March 27, 2024 in Monahans, Texas.
Brandon Bell | Getty Photographs
Requested about a few of the most important considerations relating to grease provide safety, Bosoni replied, “We’re watching, clearly, the Center East very intently. The continued tanker assaults within the Crimson Sea is of key concern, but in addition escalating tensions between Iran and Israel, after which we’re seeing tensions between Russia and Ukraine proceed, with assaults on Russian refineries.”
“So, there are a number of rigidity factors within the oil market at present that we’re watching very intently that would have main impacts … if there can be any important outages,” she added.
