IEA trims oil demand forecast for the first time this year on 'persistent' economic headwinds

The International Energy Agency connected Thursday chopped its planetary lipid request maturation forecast for the archetypal clip this year, chiefly citing a worsening economical outlook that weighs "especially heavy" connected affluent countries.

The world's starring vigor watchdog said planetary lipid request is present connected way to ascent by 2.2 cardinal barrels per time successful 2023 to scope an mean of 102.1 cardinal barrels per day.

China is acceptable to relationship for 70% of the request maturation increase, the IEA said.

This forecast nevertheless represents a downward revision of 220,000 barrels per time from past month's report, erstwhile the IEA predicted an summation of 2.4 cardinal barrels per time of worldwide growth.

"Persistent macroeconomic headwinds, evident successful a deepening manufacturing slump, person led america to revise our 2023 maturation estimation little for the archetypal clip this year," the IEA said successful its latest monthly lipid marketplace study released connected Thursday.

"World lipid request is coming nether unit from the challenging economical environment, not slightest due to the fact that of the melodramatic tightening of monetary argumentation successful galore precocious and processing countries implicit the past 12 months," the bureau added.

Looking up to adjacent year, the IEA expects request maturation to dilatory to 1.1 cardinal barrels per day, "as the betterment loses momentum and arsenic ever-greater conveyance fleet electrification and ratio measures instrumentality hold."

The IEA past period said that planetary request volition trickle astir to a halt successful the coming years and highest earlier the extremity of the decennary arsenic the modulation distant from fossil fuels gathers pace.

The Thursday study comes astatine a clip erstwhile caller U.S. ostentation and economical information renewed hopes that the Federal Reserve whitethorn beryllium closing successful connected an extremity to its complaint hiking cycle.

Oil prices traded somewhat higher connected Thursday morning, extending gains month-to-date.

Brent crude futures with September expiry were up astir 0.4% astatine $80.42 a tube astatine astir 9 a.m. London time, portion U.S. West Texas Intermediate crude futures with August transportation roseate 0.3% to commercialized astatine $75.98 a barrel.