Global oil demand growth is slowing, causing the International Energy Agency cut its 2024 growth forecast.

According to Reuters, the IEA, an agency made up of countries that represent 80% of the world’s energy consumption, said it anticipates oil demand will peak by 2030 as the world attempts to transition to cleaner energy sources. By contrast, highlighting starkly different estimates for ongoing oil demand, the Organization of the Petroleum Exporting Countries (OPEC) said it expects oil use will continue to grow over the next 20 years, peaking at 2044.

In the IEA’s monthly report published February 15, the organization anticipates oil demand to grow by 1.22 million barrels per day (bpd) in 2024, which is slightly down from the agency’s estimates the previous month. The IEA said that it attributed the 2024 deceleration to a slowdown in Chinese consumption. "The expansive post-pandemic growth phase in global oil demand has largely run its course," the IEA said.

However, just two days earlier, OPEC said that it believed oil demand will grow by 2.25 million bpd this year.

In terms of supply, the IEA increased its projections for 2024, suggesting that supplies from producers outside of OPEC+ will grow to 1.7 million bpd, up from 1.5 million bpd as previously predicted.

With a positive outlook for suppliers outside of OPEC+, the IEA said that it expects a slight increase in oil inventories during the first quarter of 2024.