IEA slashes 2025 oil demand growth forecast by a third

Shafaq News/ The International Energy Agency (IEA) sharply cut its forecast for global oil demand growth in 2025 by 300,000 barrels per day — nearly a third of its earlier estimate — citing rising economic headwinds led by the United States and China.

In its monthly report, the IEA said that the world’s two largest economies, both key drivers of global energy consumption, were central to the revision as escalating trade tensions between Washington and Beijing weigh on global markets.

The agency also warned that the slowdown in demand growth would extend beyond 2025, with projections for 2026 showing a further deceleration to just 690,000 barrels per day.

“Recent declines in oil prices have not been sufficient to offset the effects of a weak and volatile economic environment,” the report stated.

The IEA’s downward revision comes a day after OPEC also trimmed its 2025 oil demand growth forecast to 1.3 million barrels per day.