The US government’s energy-tracking agency added to a chorus of concerns about falling demand for oil next year caused by an economic slowdown in China, the world’s largest crude importer.
Global crude consumption will be about 104.5 million barrels a day in 2025, down 200,000 barrels a day from a previous forecast and cutting next year’s projected demand growth rate to 1.6%, according to a monthly Energy Information Administration report Tuesday. The downward revision was driven by concerns that China’s economy has been slowing.
China reported its weakest economic growth in five quarters last month, and traders and banks have flagged slowing demand in Asia as a bearish factor for crude.
Despite signs of an economic slowdown across the Pacific, jet fuel remains a bright spot in US consumption. Increased air travel led to an upward revision in projected demand for the fuel this year, and next year’s consumption is still expected to exceed pre-pandemic levels, the EIA said.
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