Global oil demand undermined by China lockdowns, IEA says

Falling oil demand in China as the economy faces Covid-19 stop-start lockdowns is outweighing robust crude demand elsewhere in the world and will dampen oil demand growth this year, the International Energy Agency said Wednesday.

In its report on the oil market, the IEA lowered its forecast for Chinese oil demand from 400,000 barrels per day this year to 15 million barrels per day, 420,000 barrels per day less than last year. For 2023, the Paris-based agency has lowered its demand forecast for China by 300,000 barrels per day, but still expects demand to increase to 16 million barrels per day as restrictions linked to the Covid-19 pandemic are relaxed.