The International Energy Agency on Thursday slashed its 2024 oil demand growth forecast, citing a “rapidly slowing” Chinese economy.
Global oil demand growth is now expected to expand by 900,000 barrels per day this year, 70,000 bpd less than its previous estimate, the IEA said in its monthly oil market report.
China’s crude demand is projected to expand by only 180,000 bpd this year as an economic slowdown and a shift towards alternative energy sources reduce oil consumption, the agency said.
“Surging electric vehicle sales are reducing road fuel demand while the development of a vast national high-speed rail network is restricting growth in domestic air travel,” the IEA said.
The recent slowdown in China has seen its oil consumption declining for a fourth consecutive month in July, by 280,000 bpd year-over-year, the agency said.
China's post-Covid economic boom was short-lived, as property market woes, weak consumer spending, and manufacturing slowdown hampered its recovery.
“Outside of China, oil demand growth is tepid at best,” the IEA said.
Petrol use in the US, the world’s largest oil consumer, declined year-over-year in five out of the first six months of 2024, the agency said.
Oil demand in advanced economies could be nearly 2 million bpd lower than pre-pandemic levels this year on structural headwinds and weak economic growth.
“Current trends reinforce our expectation that global demand will plateau by the end of this decade,” the agency added.
Earlier this month, the Opec+ alliance delayed by two months the start of their planned easing of voluntary production cuts amid a sharp drop in oil prices.
Brent, the benchmark for two-thirds of the world’s oil, has lost more than a fifth of its value since reaching a high of $91 a barrel in April this year.
Although prices initially rose due to a supply disruption in Libya, oil quickly lost those gains and continued to decline as traders refocused on demand in China and the US.
“The delay gives the alliance some time to further evaluate demand prospects for next year, as well as the impact of Libyan outages,” the IEA said.
“But, with non-Opec+ supply rising faster than overall demand – barring a prolonged stand-off in Libya – Opec+ may be staring at a substantial surplus, even if its extra curbs were to remain in place.”.
The IEA said that global oil supply increased by 80,000 bpd to 103.5 million bpd in August.
Production disruptions from a political crisis in Libya and maintenance work in Norway and Kazakhstan were offset by higher output from Guyana, Brazil, and other regions, the agency added.
On Wednesday, Opec lowered its oil demand growth forecast for 2024 and 2025 for the second consecutive month on slowing consumption in major economies.
Opec expects global oil demand to grow by 2 million bpd this year, down 80,000 bpd from the group’s previous estimate.
The producer alliance also lowered its forecast for 2025 crude demand growth to 1.74 million bpd, down from 1.78 million bpd.
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
Torbal Rayeh Wa Jayeh
Starring: Ali El Ghoureir, Khalil El Roumeithy, Mostafa Abo Seria
Stars: 3
Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes.
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5