Global oil demand is expected to increase by almost 2 million barrels a day in 2024, with China accounting for more than 25% of the increase, consultancy Wood Mackenzie said in a report.
WoodMac projected total oil demand of 103.5 million barrels per day for this year.
“Much of the growth in oil demand will be coming in the second half of the year. This will be fuelled by improving economic growth and lower interest rates," Alan Gelder, senior vice president of research at WoodMac, said.
The consultancy said oil supply is expected to lag demand growth as OPEC+ supply cuts slow production growth across 2024, although it said could move into oversupply without output restraint, especially if demand growth is lower than expectations.
Some analysts have predicted weak economic growth will weigh on oil markets and curb demand, keeping prices around $80 a barrel this year, according to a Reuters poll.
Tension in the Middle East, and the associated risk of supply disruption, supported oil prices on Thursday.
A Reuters survey found OPEC oil output rose in December as increases in Iraq, Angola and Nigeria offset ongoing cuts by Saudi Arabia and other members of the wider OPEC+ alliance to try to support of the market.
