International Energy Agency Report

Crude oil consumption dwindling

by Port News Editorial Staff

In the fourth quarter of the year, oil consumption is going to be down by about 240,000 barrels per day compared to the levels of the same period last year according to the International Energy Agency’s latest report.

The production cutbacks  imposed by OPEC+ countries; the Chinese economic slowdown; the European energy crisis and the strengthening of the dollar are all factors that are weighing heavily on consumption.

According to the IEA, demand will remain subdued through the first quarter of 2023.  However, it is due to pick up momentum again in the second quarter, when it should even exceed 2019 volumes.

In 2023, global oil demand is estimated to be around 1.6 million barrels per day, down from the expected  2.1 mb/d in 2022.

In October, global oil supply was up  by 410 thousand barrels a day to 101.7 million barrels per day. The IEA forecast is that supply will shrink by 1 million barrels per day between now and the end of the year, due to OPEC+ cuts and the European embargo on Russian crude.

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