Iea Boosts 2025 Oil-demand Forecast, Notes Soft Outlook

The International Energy Agency (IEA) connected Thursday raised its projection for 2025 lipid request growth, driven by emerging Asia, but noted that wide request remains soft.

The Paris-based agency said that lipid markets are still dealing pinch a proviso glut, and request from China—which is weathering an economic downturn—"has slowed markedly."

The IEA now forecasts world request to turn by 1.1 cardinal barrels per time (B/D), up from last month's forecast of "just awkward of" 1 cardinal B/D adjacent year.

It trim estimates for this twelvemonth to 840,000 B/D from astir 920,000 B/D previously. 

OPEC+ Members Recently Extended Output Cuts

The forecast comes a week aft nan Organization of nan Petroleum Exporting Countries and its friends (OPEC+) announced they will support voluntary accumulation cuts of 2.2 cardinal B/D successful spot until nan extremity of March.

Still "persistent overproduction from immoderate OPEC+ members, robust proviso maturation from non-OPEC+ countries and comparatively humble world lipid request growth" person led to an lipid glut, nan agency said. If nan OPEC+ confederation unwinds nan cuts starting astatine nan extremity of March, world lipid markets will spot an accrued "overhang" of 1.4 cardinal B/D, nan IEA said.

"While nan marketplace is intimately assessing ongoing geopolitical tensions and evolving OPEC+ proviso dynamics, nan bigger mobility for 2025 remains world lipid demand," nan IEA said, noting that nan "abrupt halt to Chinese lipid demand maturation this year," arsenic good arsenic "sharply little increases" successful immoderate emerging nations, "has tilted statement towards a softer outlook."

Brent crude futures are level astatine $73.51 a tube Thursday, while West Texas Intermediate futures are small changed astatine $70.28 a barrel.