Dow Jones Newswires: Global oil demand undermined by China lockdowns, IEA says

by | Sep 14, 2022 | Stock Market

By Will Horner Weaker demand for oil in China, as the economy faces stop-start Covid-19 lockdowns, is outweighing robust crude demand elsewhere in the world and will crimp oil demand growth this year, the International Energy Agency said on Wednesday.

In its closely watched oil market report, the IEA lowered its forecasts for Chinese oil demand by 400,000 barrels a day this year, to 15 million barrels a day, 420,000 barrels a day less than last year. For 2023, the Paris-based agency lowered its China demand forecasts by 300,000 barrels a day, but still expects demand to rise to 16 million barrels a day as Covid-19 pandemic restrictions are relaxed. China’s economy, the world’s second-largest, is proving to be the global laggard in oil demand. Among other nations, oil demand has remained surprisingly robust despite high inflation, rising interest rates and slowing economic growth. Oil demand in the U.S. is proving stronger than expected, the IEA said, while Middle Eastern demand is also strong as hot temperatures prompt above-average demand for oil-fired electricity generation. Meanwhile, in Europe, soaring gas prices–prompted by Russia’s halt to flows through the Nord Stream pipeline–are adding greater-than-expected lev …

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