‘Oil demand growth set to slow but stays robust’

Global oil demand growth will slow next year but will still be at a robust 1.7% as China recovers from Covid-related economic doldrums, the International Energy Agency (IEA) said on Wednesday.

This year, China is still headed for a contraction in oil demand of 400,000 barrels per day (bpd) to 15.4 million bpd, the IEA added, before recovering by almost one million bpd in 2023.

Russia’s oil output will fall by 1.4 million barrels per day (bpd) next year, the IEA predicted, further tightening balances as a December 5 price cap imposed by the G7, the European Union and Australia, takes effect seeking to curb Moscow’s wartime revenue.

Russia’s output rose by 90,000 bpd in November to 11.2 million bpd, just 200,000 bpd below levels seen before Moscow sent troops into Ukraine.

Global economic challenges and concerns over demand in top oil importer China have helped erase most oil price gains this year, but the IEA said demand in some areas was surprisingly robust.

China, India and the Middle East picked up some of the slack left by flagging oil uptake in Europe and elsewhere in East Asia, the IEA said.