Unease about prospects for global oil demand may account for this market malaise, analysts say.
The agency’s report is likely to add to fears among oil traders that China, for decades the key driver of global oil demand growth, no longer performs this role.
Growth in its consumption of oil is expected to slow, especially in the latter years of the forecast, which runs through 2028.
There is a “dawning realization that China’s economic recovery from Covid isn’t producing the same sort of oil demand growth that China had prepandemic” said Henning Gloystein, a director at Eurasia Group, a political risk firm.
These vehicles will mean that three million barrels a day of oil a day that might have been consumed will instead remain in the ground.
Persons:
lockdowns, isn’t, prepandemic ”, Henning Gloystein
Organizations:
Brent, Eurasia Group, International Energy Agency
Locations:
Riyadh, China