Emmanuel OchayiThe International Energy Agency (IEA) revealed a downward shift in the global crude oil demand for the fourth quarter of 2023, marking a significant decrease from projections.
The agency anticipates a slip to 101.7 million barrels per day, highlighting a noticeable slowdown in demand growth from 2.8 million barrels per day in Q3 to 1.9 million barrels per day in Q4.
Join our WhatsApp Channel“This adjustment is primarily due to a slower growth in crude oil demand than initially anticipated in Europe, Russia, and the Middle East,” explained the IEA spokesperson, highlighting the weakening global economic outlook as a contributing factor.
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As the world braces for 2024, the IEA expects a continued decline in oil consumption growth to 1.1 million barrels per day, emphasizing cleaner energy trends such as improved energy efficiency and increased adoption of electric vehicles as key reasons for this deceleration.
The agency also adjusted its 2024 forecast, estimating a demand of 102.8 million barrels per day, with oil consumption growth projected to halve compared to earlier forecasts. These adjustments come on the heels of increased projections last month, credited to robust demand in China and more efficient oil production in the United States and Brazil.
With the normalization of demand patterns and the fading disruptions caused by COVID-19, the IEA envisions a marked change in the trajectory of global oil consumption, signaling a cleaner energy-centered slowdown shortly.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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