2024-03-14 11:59:58
According to the International Energy Agency, this is explained in particular by American demand supported by “increasing petrochemical operations and a relatively dynamic economy”.
Global oil demand is expected to “increase more strongly than expected” in the first quarter of 2024, fueled in particular by an improved outlook in the United States and an increase in demand from ships that bypass Africa to avoid attacks by the Houthis, according to the International Energy Agency (IEA).
Demand is expected at 102.03 million barrels per day (mb/d) over the first three months of the year, i.e. 1.7 million more than in the first quarter of 2023 and 270,000 barrels more than during the previous estimate, the IEA said on Thursday in its monthly report. According to the agency, this is explained in particular by American demand supported by “increasing petrochemical operations and a relatively dynamic economy”.
“In addition, disruptions to international trade routes following unrest in the Red Sea are extending sailing distances and leading to increased ship speeds, thereby increasing fuel demand,” the IEA adds.
Houthi rebels in Yemen have carried out frequent attacks on commercial and military ships passing through the Red Sea since November, in support of the Palestinians in Gaza.
A historic peak expected in 2024
However, for the full year, “while growth for 2024 was revised upward by 110,000 barrels per day from last month’s report, the pace of expansion is poised to slow, passing from 2.3 mb/d in 2023 to 1.3 mb/d”, notes the IEA.
The slowdown in growth is at a pace closer to “its historical trend”, following a period of post-Covid rebound, but this will not prevent demand from reaching a historic peak in 2024, according to the IEA.
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