The International Energy Agency (IEA) on Tuesday revised down its global oil demand growth forecast for 2025 by 300,000 barrels per day (bpd) compared to last month's assessment.
Global oil demand is now estimated to increase by 726,000 bpd to 103.54 million bpd in 2025, according to the IEA's latest oil market report.
The revision comes 'as escalating trade tensions have negatively impacted the economic Outlook,' the agency said in the report.
The US and China account for roughly half of this downgrade, with trade-oriented Asian economies making up most of the rest, it added.
Demand in OECD countries is estimated to stand at 45.4 million bpd, down 199,000 bpd from the previous year, and 58.08 million bpd in non-OECD nations, up by 925,000 bpd.
'Growth is expected to slow further in 2026, to 690,000 bpd, as lower oil prices only partly offset the weaker economic environment. Risks to the forecasts remain for both years given the fast-moving and increasingly uncertain macro backdrop,' the report added.
- World oil production increases in March
Global oil supply in March rose by 590,000 bpd to 103.58 million bpd with non-OPEC+ countries accounting for nearly all of the rise.
'Non-OPEC+ supply increased by 750,000 bpd in March as North America production extended its recovery from steep weather-related losses in January,' the report said.
The US and Canada accounted for 470,000 bpd of the gains, while output in Norway and Brazil rose by 70,000 bpd each. Chinese production rose 50,000 bpd last month.
OPEC+ crude oil output fell by 150,000 bpd, as declines in production from Iran and Venezuela outweighed modest increases in Saudi Arabia and Kuwait.
Compared with a year ago, global oil production in March rose by 910,000 bpd with non-OPEC+ producers contributing 890,000 barrels of the increase.
By Firdevs Yuksel and Handan Kazanci
Anadolu Agency
energy@aa.com.tr