The US Energy Information Administration announced Tuesday that oil demand growth in the United States and the world will be lower in 2025 than previously expected.
The administration stated in a report issued Tuesday on short-term energy forecasts that oil demand in the United States will rise to 20.5 million barrels per day next year, down from its previous forecast of 20.6 million barrels per day.
The administration added in its report that US oil demand forecasts for 2024 remained unchanged at 20.3 million barrels per day.
It said that global oil demand is expected to grow to 104.3 million barrels per day next year, about 300,000 less than previously expected.
It also said that the reduction in this year’s forecasts is due to a decline in oil imports and oil refining operations in China, the largest buyer of crude oil in global markets, adding that the reduction in next year’s forecasts is due to concerns about weak industrial production in the United States and Canada.
The US oil production is also expected to rise to lower record levels this year and next, it added.
The administration expected the United States, currently the world’s largest oil producer, to produce 13.22 million barrels per day this year, down from a previous forecast of 12.25 million.
It noted that US oil production in 2025 is now expected to average about 13.54 million barrels per day, down about 1 percent from a previous forecast of 13.67 million.
Oil prices fell earlier Tuesday by more than $1 a barrel, as traders took profits after a strong rally in the previous session that pushed the market to its highest levels in more than a month, amid fears of an escalation in the Middle East conflict.
Source: Qatar News Agency