Global oil demand growth is down sharply this year from the rates seen in recent years an IEA analysis shows.

Although oil demand is on course to increase by 900,000 barrels per day or 0.9 per cent in 2024 and 950,000 barrels per day next year, this is down from growth of 2.1 million barrels per day, or 2.1 per cent in 2023, according to the latest monthly Oil Market Report.

The IEA ascribes this to the recent downturn in China, the “cornerstone” of the growth in global oil demand so far this century. China’s overall economic growth is slowing from the rapid rates seen in previous decades. At the same time, growing domestic sales of EVs to eating away at petrol use and high-speed rail networks are reducing the growth of internal air travel. Slowing construction investment amid a prolonged real estate slump is also weighing on demand.

Outside China, oil demand growth is tepid too.

---