Global oil demand growth will slow to just under a million barrels per day (bpd) this year and next, the International Energy Agency (IEA) said, as Chinese consumption contracted in the second quarter amid economic woes.

Global demand in the second quarter rose by 710,000 bpd year on year in its lowest quarterly increase in over a year, the IEA wrote in its monthly oil report.

“China’s pre-eminence (is) fading. Last year the country accounted for 70% of global demand gains – this will decline to around 40% in 2024 and 2025,” the IEA said.

The IEA’s forecast for relatively low oil demand growth of 970,000 bpd this year was largely unchanged from its outlook last month. It sees an increase of 980,000 next year.

As the post-COVID economic rebound flattens out worldwide, the IEA added, lacklustre economic growth, increased energy efficiency and the rise of electric vehicles will act as headwinds for growth this year and next.

Global demand in the second quarter rose by 710,000 bpd year on year in its lowest quarterly increase in over a year, the IEA wrote in its monthly oil report.

“China’s pre-eminence (is) fading. Last year the country accounted for 70% of global demand gains – this will decline to around 40% in 2024 and 2025,” the IEA said.

The IEA’s forecast for relatively low oil demand growth of 970,000 bpd this year was largely unchanged from its outlook last month. It sees an increase of 980,000 next year.

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As the post-COVID economic rebound flattens out worldwide, the IEA added, lacklustre economic growth, increased energy efficiency and the rise of electric vehicles will act as headwinds for growth this year and next.