China fuels increase in global oil demand: IEA

AFP , Tuesday 14 Nov 2023

World oil demand will rise slightly more than expected this year as China's appetite for the fossil fuel hit a record and Israel's war in Gaza did not hit supply flows, the International Energy Agency said Tuesday.

China Jiangsu province economy
This aerial photo shows shipping containers at Nanjing port in China s eastern Jiangsu province on November 13, 2023. AFP

 

The Paris-based organisation said global demand is forecast to hit an all-time high in 2024, although it will grow at a sharply slower pace.

"World oil demand continues to exceed expectations," the IEA said in its monthly oil market report.

The IEA said demand from China, the world's top importer of crude and its second biggest economy, reached another record high at 17.1 million barrels per day (bpd) in September.

Global oil demand is now forecast to reach 102 million bpd in 2023, the IEA said.

China is expected to account for 1.8 million bpd of the 2.4 million bpd increase in world demand.

Demand is expected to grow by 940,000 bpd in 2024.

"Despite growth that is almost two-thirds lower than this year's increase, global oil demand is set to rise to a record annual high" of 102.9 million bpd in 2024, the IEA said.

Israel's war on the Gaza Strip, which began last month, raised concerns of a wider Middle East conflict that would disrupt the flow of oil supplies.

However, the IEA said that "there has been no material impact on oil supply flows from the war".

*This story was edited by Ahram Online

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