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An oil pump jack is shown in a field in Nolan, Texas.” src=”https://energynews.today/wp-content/uploads/2024/08/99cba69bda66e2c2854907accb6ef7a6″ data-src=”https://energynews.today/wp-content/uploads/2024/08/99cba69bda66e2c2854907accb6ef7a6″>
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An oil pump jack is shown in a field in Nolan, Texas.
KEY TAKEAWAYS
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Global oil demand growth is set to slow to just under 1 million barrels a day this year and next, according to the International Energy Agency (IEA).
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China’s weakening economy is weighing on global oil demand growth, even as U.S. demand is rising, according to the IEA.
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Rising gasoline demand is lifting U.S. oil consumption.
Global oil demand growth is set to slow to just under 1 million barrels a day this year and next, according to the International Energy Agency (IEA), which attributed the view to China’s weak economy.
“A meaningful shift in drivers is becoming apparent,” the Paris-based agency said, noting that China’s oil demand contracted for a third consecutive month in June and could be weaker in July “as crude oil imports sank to their lowest level since the stringent lockdowns of September 2022.”
US Oil Demand Is Strong
However, the IEA said that U.S. demand is rising, especially for gasoline. A third of global gasoline is consumed in the U.S.
The strength in U.S. demand, according to IEA, led Organisation for Economic Co-operation and Development (OECD) oil consumption to increase in the second quarter after contracting in the first three months of the year.
“For now, supply is struggling to keep pace with peak summer demand, tipping the market into a deficit,” the IEA said. “As a result, global inventories have taken a hit. “
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