According to the International Energy Agency (IEA), global oil demand is projected to grow at a slower rate next year due to weakening Chinese consumption.
The IEA reports that global oil demand will lag behind supply by over 1 million barrels per day (bpd) in 2025, even if current OPEC+ production cuts remain in effect. In its latest monthly report, the Paris-based agency maintained its oil demand growth forecast for next year at an increase of 990,000 bpd.
China’s oil consumption in the third quarter was 270,000 bpd lower compared to the same period in 2023, following six consecutive months of declining demand through September.
The IEA also slightly raised its 2024 demand growth forecast by 60,000 bpd, now expecting a rise of 920,000 bpd, driven by stronger-than-anticipated gasoil demand in OECD countries during the third quarter.
Brent crude, the global oil benchmark, recently fell 0.3% to just under $72 per barrel, marking a 6.5% decline year-to-date.
Gas prices soar to highest level this year after Russia supply concerns.
Gas prices hit a year-high following a warning from a major European energy firm that legal disputes could disrupt supplies from Russia.
Dutch front-month futures, Europe’s key benchmark contract, jumped by as much as 5.4% after Austrian energy company OMV intervened.
Prices exceeded €46 per megawatt hour for the first time since last November, following OMV’s €230 million (£191 million) arbitration award related to Russian supplier Gazprom.
The dispute centers on “irregular” gas deliveries from Gazprom to OMV in 2022.
OMV announced it will immediately seek to recoup the settlement by offsetting claims against Gazprom’s invoices. The company cautioned that this move could strain its contractual relationship with Gazprom and potentially disrupt future supplies.
Europe remains vulnerable to fluctuations in gas supply after Russia significantly curtailed pipeline deliveries in response to Vladimir Putin’s invasion of Ukraine.
