IEA maintains oil demand growth forecast for 2024, cuts 2025 estimates
Date
8/14/2024 5:40:46 AM
(MENAFN) On Tuesday, the International energy Agency (IEA) maintained its forecast for global oil demand growth in 2024 but reduced its projection for 2025, citing a decline in Chinese consumption's impact on economic growth. The IEA noted that the conclusion of China’s post-COVID-19 economic recovery is constraining global oil demand. However, the shortfall is being offset by robust consumption in advanced economies, particularly in the United States, which consumes a significant portion of the world's gasoline. The agency highlighted that the summer driving season in the U.S. is expected to be the strongest since the pandemic, and OPEC+ production cuts are contributing to a tightening in the physical oil market. The IEA's monthly oil report indicated that current supply struggles to meet peak summer demand, resulting in a market deficit.
In the UK, official data revealed an unexpected drop in the unemployment rate to 4.2 percent for the second quarter, down from 4.4 percent in the previous period, defying analyst expectations of a slight rise. Concurrently, wage growth excluding bonuses slowed to 5.4 percent, the lowest increase since August 2022. Liz McEwen of the Office for National Statistics noted that while job vacancies are decreasing, the total number remains above pre-pandemic levels. This week’s forthcoming inflation figures and second-quarter growth data are anticipated to offer insights into the Bank of England's future interest rate decisions. Ruth Gregory of Capital Economics suggested that a further slowdown in wage growth could lead the Bank of England to implement two additional rate cuts of 25 basis points each later this year, following its first cut earlier this month since the onset of the COVID-19 pandemic.
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