IEA cuts 2023 oil demand forecast as economic headwinds rise – London Business News | London Wallet

International Energy Agency has trimmed its forecast for oil demand this year, due to the headwinds hitting the global economy

The IEA still believes oil demand will hit a record high this year but factors such as interest rate hikes mean the increase will be slightly less than anticipated.

Global oil demand is projected hit 102.1 million barrels per day, a new record, and an increase of 2.2 million barrely per day.

But, the IEA says a “deepening manufacturing slump” means it has cut its 2023 growth estimate for the first time this year, by 220,000 barrels per day.

In its monthly oil report, the IEA says: “World oil demand is coming under pressure from the challenging economic environment, not least because of the dramatic tightening of monetary policy in many advanced and developing countries over the past twelve months.

“Growth in 2023 has been revised down for the first time this year, to 2.2 mb/d from 2.4 mb/d expected previously, with China poised to account for 70% of the total.”