IEA downgrades oil demand growth forecast as prices heat up on elevated Middle East tensions

The International Energy Agency (IEA) has downgraded its forecast for 2024 oil demand growth. It cited weak deliveries in the Organisation for Economic Co-operation and Development (OECD), a decline in the post-Covid-19 recovery, and an expanding electric vehicle fleet. The IEA revised down the growth forecast by 100,000 barrels per day (bpd) to 1.2 million bpd. It expects the pace of expansion to further slow to 1.1 million bpd next year. These developments are occurring against a backdrop of escalating tensions in the Middle East, as market participants monitor the potential for supply disruptions.