Asia Drives 2025 Oil Demand Growth As Cuts, Sanctions Reduce Supply Surplus: EA Oil Market Report

Faizan Hashmi Published February 15, 2025 | 06:45 PM

PARIS, (UrduPoint / Pakistan Point News / WAM - 15th Feb, 2025) Global oil demand growth is projected to average 1.1 mb/d in 2025, up from 870 kb/d in 2024, according to the IEA Oil Market Report (OMR) for February.
The monthly publication noted that China will marginally remain the largest source of growth, even as the pace of its expansion is a fraction of recent trends and driven almost entirely by its petrochemical sector.

At the same time, India and other emerging Asian economies are taking up increasing shares. OECD demand is forecast to return to structural decline following a modest increase last year.
‘’World oil supply plunged 950 kb/d to 102.7 mb/d in January, as seasonally colder weather hit North American supply, compounding output declines in Nigeria and Libya.

Supply was nevertheless 1.9 mb/d higher than a year ago, with gains led by the Americas. Global oil supply is on track to increase by 1.6 mb/d to 104.5 mb/d in 2025, with non-OPEC+ producers accounting for the bulk of the increase if OPEC+ voluntary cuts remain in place,’’ it said.
Global observed oil stocks fell 17.1 mb m-o-m to 7 647 mb in December, as crude oil stocks plunged by 63.5 mb and products stocks rose by 46.4 mb.

OECD industry inventories continued to decline, by 26.1 mb to 2 737.2 mb, 91.1 mb below their five-year average. Preliminary data show total global inventories falling a further 49.3 mb in January, led by a large crude stock draw in China.