The International Energy Agency (IEA) on Thursday lowered its forecast for global oil demand for this year. In China, where the new coronavirus infection is spreading again, the number of lockdowns (city blocks) has increased, and the country’s economic activity has slowed down.
In its latest monthly report, the IEA said it expects global oil consumption to increase by 2 million barrels per day in 2022 to an average of 99.7 million barrels per day. The original estimate was reduced by around 110,000 barrels.
Demand is expected to rise again to around 2 million barrels per day in 2023, but “for now, the worsening economic environment and the new lockdowns in China continue to weigh on market sentiment. ” he noted.
China’s oil demand is expected to fall by 420,000 barrels a day this year, the IEA said. It fell by 2.7% year on year, since 1990 when China’s oil demand fell by 1% for the year. That year was the only decrease since 1984, when the IEA began keeping statistics.
China has reintroduced lockdowns in places like Chengdu, which has a population of 21 million, as part of its “no coronavirus” policy. Meanwhile, house prices have fallen for the 11th straight month and have not stopped falling despite government support measures.
Original title:IEA Trims Oil Demand Estimate as Restrictions Deepen China’s Slide （抜粋）
IEA Sees Biggest Drop in China’s Oil Demand Over Three Decades (1) (抜粋）
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