China's repeated Covid lockdowns and a slowdown in developed economies are weighing on the growth of global oil demand this year, the International Energy Agency said Wednesday.

The deceleration of demand for crude is partly offset by a switch from gas to oil for power generation, as soaring gas prices have prompted countries to change fuels, said the IEA.

Global oil demand is now expected to grow by two million barrels per day this year, slightly down from the previous forecast of 2.1 mbd.

Total demand is projected to reach 99.7 mbd in 2022 before returning to pre-Covid levels next year, at 101.8 mbd, if China reopens to the world, said the Paris-based agency, which advises developed countries on energy policy.

"A deteriorating economic environment and recurring Covid lockdowns in China continue to weigh on market sentiment," the IEA said in its monthly report on global oil demand.

China is the world's biggest importer of crude, so a slower economic activity there affects global demand for the fossil fuel.

Meanwhile, Russian oil production and exports "have proved resilient", with August levels only 400,000-450,000 barrels per day under pre-war levels, the IEA said, despite Western sanctions against the country over the Ukraine conflict.

The rerouting of Russian oil to India, China, Turkey and other countries "has mitigated" the losses in other markets, including a 2.0 mbd drop in shipments to Europe, the United States, Japan and South Korea since the start of the year, the report said.

But a European Union embargo on Russian crude oil that comes into effect in December is expected to result in deeper declines, the IEA said.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

UN urges EU against fossil fuels in response to energy crisis
Geneva (AFP) Sept 12, 2022
The UN urged EU countries on Monday to continue battling climate change and not resort to more fossil fuels in their response to soaring energy prices and fears of winter shortages. Russia has reduced supplies of gas to Europe since its invasion of Ukraine, sending prices for the fuel soaring. "There is no room for backtracking in the face of the ongoing climate crisis," deputy UN rights chief Nada Al Nashif told the United Nations Human Rights Council. She pointed to the devastating floods ... read more