Global oil demand is experiencing a downturn, as reported by the International Energy Agency (IEA).
The agency recently reduced its demand projection for the last quarter of 2023 by 400,000 barrels per day, cautioning that growth rates are expected to significantly decrease in 2024. This decline is attributed to reduced economic activities in major countries.
Oil Reaches Six-Month Low in Market Prices
Meanwhile, the IEA noted that increased oil production in the US, Brazil, and Guyana is compensating for the production reductions by Saudi Arabia and its OPEC+ partners, who have been attempting to stabilize prices.
In its latest report, the IEA stated, “Signs of a deceleration in oil demand are becoming more evident. This loss of momentum in oil demand growth is a consequence of the worsening macroeconomic environment.”
Earlier this week, the price of Brent crude fell to a five-month low, hovering around $73 per barrel. This drop reflects market concerns over an excess supply, despite production cuts by OPEC members, including Russia and Saudi Arabia.
