Today, Tuesday, the International Energy Agency reduced its expectations for the growth of global oil demand in 2025 sharply due to the escalating trade tension, a day after a similar step by the Organization of Petroleum Exporting Countries (OPEC). In today’s dealings, crude prices continued to decline in global markets, but slightly.
The agency’s move, which provides advice to industrialized countries, is the latest indication of the decline in oil demand expectations due to the customs duties imposed by US President Donald Trump and has already led to a sharp drop in oil prices this month.
The agency said in its monthly report that the global demand for oil this year will increase by 730 thousand barrels per day in a sharp decrease from 1.03 million barrels per day, which was expected last month to be the total daily demand for oil during the current year by 103.6 million barrels.
A future look
She stated that “the deteriorating future view of the global economy in light of the sharp and sudden escalation of trade tension in early April led us to reduce our expectations for the growth of oil demand this year.”
She added: “The United States and China have half this reduction, and the Asian economies directed towards trade in most of the rest.”
The agency expected that “growth slows down in 2026 to 690 thousand barrels per day, as the decline in oil prices has only erased part of the impact of the weakness of the economic environment.”
In today’s trading, Brent crude futures fell 50 cents, or 0.8% to 64.38 dollars a barrel by 10:05 GMT, and US West Texas Intermediate crude fell 50 cents or 0.8%
To $ 61.03.
OPEC expectations
The agency’s reduction in its expectations for 2025 comes after a similar step taken by OPEC on Monday, although the agency’s move was more severe.
OPEC has reduced in a report yesterday, its expectations for global demand for oil for the current year were reduced by about 1.30 million barrels per day and for the next year to 1.28 million barrels per day, a decrease of 150 thousand barrels per day per year from last month numbers, bringing the total global demand for oil during the current year 106.2 million barrels per day. OPEC has also reduced its forecast for 2026 to 1.28 million barrels per day.
OPEC expectations for oil demand comes at the maximum sector expectations and expects to continue to use oil for years, unlike the International Energy Agency, which expects the demand to reach this contract with the world turning into cleaner fuel types.
