By Giulia Petroni
The International Energy Agency lifted its forecast for oil-demand growth this year on an improved outlook in the U.S. and increased bunkering, while it cut estimates for global supply on lower output expectations from OPEC+.
Oil-demand growth is now seen at 1.3 million barrels a day from a previous forecast of 1.2 million barrels a day, the Paris-based organization said. Total demand is expected to average 103.2 million barrels a day from previously 103 million barrels a day.
The revision was attributed to surging ethane demand in the U.S. for the petrochemical sector and increased bunker fuel use due to trade flow disruptions caused by Houthi attacks on Red Sea shipping.
Meanwhile, the global supply-growth forecast was cut to an average of 102.9 million barrels a day from 103.8 million barrels a day previously, the agency said, after OPEC+ output expectations were lowered by 920,000 barrels a day.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
03-14-24 0514ET
