Decreased prices and cooler temperatures driving expansion
In its latest report, the IEA observes that global oil demand increased in the fourth quarter of 2024, driven by lower fuel prices, cooler weather, and an abundance of petrochemical raw materials, marking the strongest growth since the second half of 2023. The IEA's Oil Market Report (OMR) is recognized as one of the most reliable and up-to-date sources for data, forecasts, and analyses of the global oil market.
Depleted reserves might see a recovery in the coming months.
However, crude oil reserves remain limited, with U.S. inventories at historically low levels despite slight increases in gasoline and distillate stocks. This restricted supply not only helps keep oil prices stable but also highlights the potential need for stock replenishment, which could further boost oil demand in the coming months and maintain market balance.
Source: IEA