Paris, France

The International Energy Agency (IEA) said on Friday (August 11) it raised its projection for global oil demand growth in 2023 to "scaling record highs". 

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IEA said that OPEC+ production cutbacks could reduce oil stocks for the rest of this year, potentially sending prices further higher. 

The Paris-based IEA said in its monthly report noted that the world oil demand already hit a record 103 million barrels per day in June and August and "could see yet another peak". 

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It said, "For 2023 as a whole, global oil demand is set to expand by 2.2 million barrels per day to 102.2 million barrels per day." 

The IEA said that China accounted for 70 per cent of growth. It further added that demand in the Asian giant was "also stronger than expected, reaching fresh highs despite persistent concerns over the health of the economy". 

The IEA said: "World oil demand is scaling record highs, boosted by strong summer air travel, increased oil use in power generation and surging Chinese petrochemical activity." 

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The agency said that the projected increase in global demand in 2023 will be the "highest ever annual level," having already anticipated an annual record for the year of 101.9 million barrels per day in February. 

The increasing demand for oil comes amid tensions in world markets as global oil supply plunged in July. A sharp reduction in production by Saudi Arabia last month to help prop up prices saw output from the 23-nation OPEC+ alliance fall 1.2 million barrels per day, to 50.7 mb/d. 

(With inputs from agencies)

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