China's Surging Appetite Drives Global Oil Demand Upward: IEA
The world's oil demand is expected to rise more than predicted this year due to China's unparalleled interest in fossil fuels and the lack of disruption in supply flows caused by the Israel-Hamas conflict, according to the International Energy Agency's recent report.
The Paris-based organisation predicted that despite growing at a much slower rate, global demand will peak in 2024. In its monthly oil market report, the IEA stated that global oil demand is still exceeding expectations.
China, the world's second-biggest economy and the biggest importer of crude oil, broke another milestone in September when its daily demand reached 17.1 million barrels.
The IEA predicted that global oil demand will reach 102 million barrels per day in 2023, with China contributing 1.8 million barrels per day to the overall increase of 2.4 million barrels per day.
Demand is expected to increase by 940,000 barrels per day by 2024. The IEA projected that global oil demand will reach a record annual high of 102.9 million barrels per day, despite growing at a rate that is almost two-thirds slower than the increase seen this year.
Concerns about a possible wider Middle East conflict upsetting oil supply flows surfaced throughout the recent conflict in the Gaza Strip. However, the IEA confirmed that the conflict between Israel and Hamas has not had a significant effect on oil supply flows.
