According to the International Energy Agency (IEA), global oil demand growth is expected to stall in the fourth quarter of this year. Demand has been impacted by a sharp economic downturn, but could recover strongly by 2023.
In its monthly report, the IEA notes that global oil demand remains under pressure due to the sluggish Chinese economy and the ongoing slowdown in the Organization for Economic Cooperation and Development (OECD) countries.
The IEA lowered its forecast for oil demand growth this year by 110,000 barrels per day to 2 million barrels per day and kept its 2023 growth forecast at 2.1 million barrels per day.
Most of the increase this year is due to demand from rich OECD countries. Countries outside the OECD, especially China, will support growth next year if China relaxes regulations controlling the spread of COVID-19.