LONDON: The International Energy Agency (IEA) made a further upward revision to its 2024 oil demand growth forecast on Thursday, citing improved economic growth and lower crude prices in the fourth quarter.

“The consensus economic outlook has improved somewhat over the last few months in the wake of the recent dovish pivot in central bank policy,” the IEA said in its monthly report.

“The fourth-quarter 2023 slump in oil prices acts as an additional tailwind.”

Global oil consumption is set to rise by 1.24 million barrels per day (bpd) in 2024, the agency forecast, up 180,000 bpd from its previous projection.

IEA raises oil demand growth forecasts, despite economic gloom ahead

The increase is largely driven by China’s expanding petrochemicals sector.

The revised forecast is the Paris-based agency’s third consecutive upward revision in as many months for 2024 oil demand growth.

But it remains lower than that of oil producer group OPEC, which sees demand growth of 2.25 million bpd this year.

The IEA’s projected increase is half the 2.3 million bpd growth last year, with the post-pandemic recovery all but complete, lacklustre economic growth in major economies and the impact of energy efficiency improvements.