EIA Raises Forecast for Global Oil Demand Growth

EIA Raises Forecast for Global Oil Demand Growth

In a recent statement, the US Energy Administration (EIA) announced a revised forecast for global crude oil demand, indicating an increase in growth projections for both 2024 and 2025. According to the statement released on Tuesday, the EIA anticipates a growth of 1.42 million barrels per day in global oil demand for 2024, marking a rise of 30 thousand barrels per day from previous estimates. Moreover, projections for 2025 suggest a further increase, with global oil demand growth expected to reach 1.29 million barrels per day, representing an upward revision of 80,000 barrels per day.

Adjusted Expectations for US Oil Production

Alongside the revised global demand forecasts, the EIA also provided insights into US oil production expectations. The administration anticipates a growth of 170,000 barrels per day in US oil production for 2024, bringing the total output to 13.1 million barrels per day. This revised estimate is notably lower than the previous projection, which had pegged the increase at around 290,000 barrels per day.

Market Reaction: Brent and WTI Crude Prices

In response to the latest developments, trading in standard oil contracts saw a modest uptick in prices on Wednesday. Spot Brent crude contracts recorded a 0.33% increase, reaching $78.92 per barrel. Simultaneously, spot contracts for West Texas Intermediate (WTI) crude rose by 0.38%, reaching $73.67 per barrel. These price movements reflect the market’s response to the adjusted forecasts and underscore ongoing dynamics influencing oil markets globally.