IEA Slashed Outlook for Oil Demand Growth for 2025

SEATTLE (Oil Monster): The International Energy Agency (IEA) has cut its outlook for global oil demand growth for 2025 by 300,000 barrels per day (b/d) to a total of 730,000 b/d. Intensifying trade disputes among world countries and rising economic uncertainties are being cited as the main reasons for the projected dip in oil demand growth.

The IEA monthly oil market report for April this year warned that the global oil demand growth is expected to witness further slowdown to 690,000 b/d in 2026.

According to the report, global oil demand recorded a growth by 940,000 b/d during the previous year. Also, the oil consumption remained robust during the initial three-month period of 2025, rising by 1.2 million b/d year-on-year.

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IEA expects global crude runs to average at 83.2 million b/d this year. The refinery throughputs are forecast to rise by 360,000 b/d to 83.6 million b/d in 2026, it said. The global supply growth for 2025 is forecast to see a decline by 260,000 b/d to 1.2 million b/d, mainly on account of reduced output from the U.S. and Venezuela. Meanwhile, production in 2026 is forecast to rise by 960,000 b/d.

It must be recalled that global oil supply had risen by 590,000 b/d to 103.6 million b/d in March this year, with non-OPEC+ countries being the major contributors.

Earlier, the Organisation of the Petroleum Exporting Countries (Opec) had also cut forecasts for global oil demand growth for this year and the next by about 100,000 barrels a day.