REUTERS/Agustin Marcarian/File PhotoLONDON, July 13 (Reuters) - Oil demand is set to hit a record high this year and the market is tightening but economic headwinds and interest rate hikes have deflated growth expectations slightly, the International Energy Agency (IEA) said on Thursday.
Still, the Paris-based energy watchdog sees demand growth next year rising by more than anticipated despite the rise being less than half that of this year.
The oil market is tightening, the IEA projected, with demand set to outstrip supply for the rest of 2023.
China is due to make up more than two-thirds of this year's demand growth as its post-pandemic economic rebound is set to gain pace, especially later in the year, the IEA said.
Oil demand growth is set to halve next year to 1.1 million bpd, the IEA said, reflecting vehicle electrification and energy efficiency, though it raised its view from a 860,000 bpd rise it forecast last month.
Persons:
Agustin Marcarian, halve, Noah Browning, Jason Neely
Organizations:
REUTERS, International Energy Agency, IEA, OECD, Thomson
Locations:
Vaca, Patagonian, Neuquen, Argentina, Paris, China, Europe