Global Oil Demand Hits Record in June; IEA Warns August Could Bring Another Price Peak

Global Oil Demand Hits Record in June; IEA Warns Prices Could See Another Peak in August

The International Energy Agency reported on Friday that global oil demand has reached an all-time high last month due to robust consumption in China and other countries, meaning it could lift up prices. 

In its monthly report, the International Energy Agency (IEA) stated that global oil demand is “scaling record highs” as world fuel use averaged 103 million barrels per day for the first time in June. The IEA said that rising oil consumption for power generation and soaring Chinese petrochemical activity were the reasons for the demand increases, and that August could see a further peak.

Oil demand is expected to rise by 2.2 million bpd in 2023 to 102.2 million bpd, with 70% of the growth coming from China. 

The agency forecasts that “lackluster economic conditions, tighter efficiency standards, and new electric vehicles” will reduce oil use next year, causing global demand growth to slow down to 1 million bpd.

Meanwhile, Saudi Arabia’s dramatic production cuts led to a 910,000 bpd decrease in world oil supply in July, bringing the total to 100.9 million bpd. This year, U.S. output is expected to be the primary driver of a global increase in oil production of 1.5 million bpd, to 101.5 million bpd.