The International Energy Agency (IEA) Thursday decreased its oil demand growth forecast for 2024, suggesting harsher global economic conditions and progress on energy efficiency will weigh on consumption.
The Paris-based agency, in its monthly report, lowered its 2024 demand growth forecast to 880,000 barrels per day (bpd) from its previous forecast of 1 million bpd.
However, it raised its 2023 demand forecast to 2.3 million bpd from a forecast of 2.2 million.
Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, began limiting supplies in 2022 to support prices.
In September, global benchmark Brent hit 10-month highs after Saudi Arabia and Russia extended their combined 1.3 million bpd cuts until the end of the year.
However, prices dropped dramatically last week as a darkening macroeconomic outlook intensified fears of slower demand growth, eclipsing supply concerns.
"If extra cuts are unwound in January, the balance could shift to surplus, which would go some way to help replenish depleted inventories," the agency said.
