October 21, 2024 11:04 GMT
OIL: Oil Surplus in 2025 Despite China Stimulus: IEA
OIL
Weak demand in China and a surplus of supply are expected to keep oil markets muted in 2025 according to IEA Executive Director Fatih Birol cited by Reuters.
- China's oil demand growth is expected to remain weak in 2025 despite recent stimulus measures.
- "The Chinese economy at around 4% (growth) or so would mean China will need less and less energy," he said, with demand for electric vehicles cost-competitive against conventional cars. Chinese oil demand would have been flat this year without petrochemicals, he added.
- "The impact of the stimulus has not been as significant as some of the market observers have expected," Birol said. "It is still limited. And as we see today, it will be very difficult to see a major uptick of Chinese oil demand."
- "What I see is there will be a surplus next year of oil in the markets if there are no major changes in the geopolitical context," he said. Rising supply from non-OPEC producers, the U.S., Canada, Brazil and Guyana, is higher than global oil demand growth.
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