Global Oil Demand Set to Surge in 2025, IEA reports
Table of Contents
The international Energy Agency (IEA) has revised its forecast for global oil demand, projecting a meaningful increase in 2025. According to the agency’s latest monthly oil market report, released on Thursday, global oil demand is expected to rise by 1.1 million barrels per day (bpd) in 2025, up from the previous estimate of 990,000 bpd. This upward adjustment is largely attributed to robust demand in Asian markets.
However, the IEA has also lowered its growth expectations for 2024. The agency now forecasts global oil demand to grow by 840,000 bpd next year, down from the earlier projection of 920,000 bpd. This revision comes just a day after the Organization of the Petroleum Exporting Countries (OPEC) adjusted its own forecast for 2025, predicting a demand growth of 1.4 million bpd.
OPEC’s report indicates that global oil demand is anticipated to reach 105.3 million bpd in 2025, up from 103.8 million bpd in 2024. This growth is driven by a combination of economic recovery, industrial expansion, and rising energy consumption in emerging markets.
The IEA highlighted the impact of OPEC+’s recent decision to extend voluntary production cuts. By pushing back the ramp-up period to September 2026, the group has effectively mitigated the risk of oversupply in 2024. This move is expected to stabilize oil prices and support market equilibrium in the coming years.
“The decision by OPEC+ to extend production cuts has significantly reduced the potential oversupply that was expected for next year,” the IEA report stated.
The revised forecasts come at a time when global energy markets are navigating a complex landscape. Economic uncertainties, geopolitical tensions, and the ongoing energy transition are all factors influencing oil demand and supply dynamics. Analysts are closely monitoring these trends to gauge thier impact on future market conditions.
For U.S. consumers, the implications of these forecasts are multifaceted. While higher oil demand could lead to increased prices at the pump, the stabilization of supply through OPEC+’s actions may provide some relief. Additionally, the focus on Asian markets underscores the growing importance of global trade dynamics in shaping domestic energy policies.
As the world moves toward 2025, the interplay between demand, supply, and geopolitics will continue to shape the oil market. The IEA’s latest report serves as a reminder of the interconnectedness of global energy systems and the need for strategic planning to address future challenges.
For more insights into the global energy market, stay tuned to World Today News for the latest updates and analysis.
OPEC+ Extends Oil Production Cuts Through 2026 Amid Global Supply Concerns
In a strategic move to stabilize global oil markets, OPEC+ has announced the extension of its oil production cuts until the end of 2026. This decision comes as the International Energy Agency (IEA) warns of potential oversupply in the coming years,driven by increased production from non-OPEC+ countries and moderate growth in global oil demand.
The IEA’s recent report highlights that despite OPEC+’s efforts, the global oil market could face “pleasant supplies” as early as 2025. This projection is influenced by continued overproduction from some OPEC+ members, robust growth in oil supply from non-OPEC+ nations, and a relatively modest increase in global oil consumption.
The report also suggests that OPEC’s crude oil production could rise in 2024 if countries like Libya, South Sudan, and sudan maintain their current production levels. Additionally, the expansion of the Tengiz field in Kazakhstan is expected to contribute to this growth.
Global oil consumption is anticipated to reach 103.9 million barrels per day by 2025, closely aligning with OPEC+’s forecasts. However, current market balances indicate a surplus supply of 950,000 barrels per day in 2025 if OPEC+ decides to ease its voluntary production cuts by the end of March 2025.
Oil Demand Dynamics
The IEA emphasizes that oil demand growth in 2024 will primarily be driven by petrochemical feedstocks, while demand for transportation fuels remains subdued due to behavioral shifts and technological advancements. The agency also forecasts a rise in Chinese oil demand, with an expected increase of 140,000 barrels per day in 2024 and 220,000 barrels per day in 2025.
Historically, China has been a major driver of global oil demand, contributing nearly two-thirds of total growth in the decade leading up to 2023. However, with the country’s economic growth expected to slow to an average of 4-5% annually in 2024 and 2025, coupled with the rapid adoption of alternative energy technologies like electric vehicles and high-speed rail, China’s share of global oil demand growth is projected to drop to just over a third in the coming years.
On the supply side, non-OPEC+ countries are expected to dominate production growth, with the United States, brazil, Canada, Guyana, and Argentina collectively adding more than 1.1 million barrels per day.This shift underscores the evolving dynamics of the global oil market and the challenges faced by OPEC+ in maintaining control over supply and demand balances.
As the global energy landscape continues to shift, the decisions made by OPEC+ will play a crucial role in shaping the future of oil markets. The extension of production cuts through 2026 signals a commitment to stabilizing prices and ensuring long-term market stability, but the path forward remains fraught with uncertainties.
“The extension of production cuts is a necessary step to prevent a glut in the market,” said a senior oil analyst at a leading energy consultancy.”However,the success of this strategy will depend on the ability of OPEC+ members to adhere to their commitments and the responsiveness of global demand to these adjustments.”
As the world transitions towards more enduring energy sources, the role of oil in the global economy continues to evolve. The decisions made by OPEC+ in the coming years will not only impact oil prices but also influence the broader trajectory of the global energy sector.
Saudi arabia’s Energy Future: Jafurah Gas Project Set to Transform Oil and Gas Landscape by 2025
Saudi Arabia is poised to significantly enhance its energy capabilities with the anticipated launch of Saudi Aramco’s Jafurah gas project in 2025. This enterprising initiative is expected to not only boost the Kingdom’s natural gas production but also free up more oil for export, marking a pivotal shift in global energy dynamics.
According to the International Energy Agency (IEA), the Jafurah gas project will play a crucial role in increasing Saudi Arabia’s supply of liquefied natural gas (LNG). This progress is part of a broader strategy to diversify the Kingdom’s energy portfolio and strengthen its position as a global energy leader.
In June, Saudi Aramco finalized agreements valued at $25 billion for the second phase of the Jafurah gas field development and the third phase of the main gas system expansion. These infrastructure upgrades are projected to enhance network capacity by an impressive 3.15 billion standard cubic feet per day, further solidifying Saudi Arabia’s energy infrastructure.
“The Jafurah gas project is a cornerstone of our strategy to unlock the Kingdom’s vast natural gas resources and support our transition to a more sustainable energy future,” said a spokesperson for Saudi Aramco.
The Jafurah gas field,located in the Eastern Province of Saudi Arabia,is one of the largest unconventional gas fields in the world. Its development is expected to produce approximately 2.2 billion standard cubic feet of gas per day, along with significant quantities of natural gas liquids and condensate.
This project not only underscores Saudi Arabia’s commitment to energy diversification but also has broader implications for global energy markets. By increasing its natural gas production, Saudi Arabia can reduce its reliance on oil exports, thereby influencing global oil prices and supply dynamics.
As the world continues to grapple with the challenges of climate change and the transition to cleaner energy sources, the Jafurah gas project represents a strategic move by Saudi Arabia to balance economic growth with environmental sustainability. the Kingdom’s efforts in harnessing its natural gas resources are expected to play a significant role in meeting the growing global demand for cleaner energy alternatives.
For U.S. readers, this development highlights the interconnectedness of global energy markets.As Saudi Arabia ramps up its natural gas production, the ripple effects could be felt in the U.S., where energy independence and sustainability are key priorities. The Jafurah gas project serves as a reminder of the critical role that major energy producers like Saudi Arabia play in shaping the future of global energy.
the Jafurah gas project is more than just an infrastructure upgrade; it is a testament to Saudi arabia’s vision for a sustainable and diversified energy future.As the project moves closer to its 2025 launch, the world will be watching closely to see how this initiative transforms not only Saudi Arabia’s energy landscape but also the global energy market.
[iframe class=”flourish-embed-iframe” src=”https://flo.uri.sh/visualisation/20759547/embed” style=”width:100%;height:600px” title=”Interactive or visual content”]
Age-123″/>
The Jafurah gas project is a cornerstone of Saudi Arabia’s broader strategy to diversify it’s energy portfolio and reduce its reliance on oil exports. By tapping into the vast shale gas reserves in the Jafurah field, the Kingdom aims to meet its growing domestic energy needs, especially for power generation, industrial use, and desalination plants.
Once fully operational, the Jafurah project is expected to produce approximately 2.2 billion standard cubic feet of gas per day (bcfd), making it one of the largest unconventional gas developments in the world. This production level will significantly reduce Saudi Arabia’s need to burn oil for power generation, thereby freeing up an estimated 500,000 barrels of oil per day for export.
The implications of this shift are far-reaching. for Saudi Arabia, it represents a strategic move to enhance its energy security and economic stability. By increasing natural gas production, the Kingdom can reduce its carbon footprint and align with global efforts to combat climate change. Additionally, the additional oil available for export could bolster the Kingdom’s revenue streams, particularly in a market where oil prices remain volatile.
On a global scale, the jafurah project could influence energy markets in several ways. First, it could contribute to a more balanced supply-demand dynamic in the oil market. With more oil available for export, Saudi Arabia could help mitigate potential supply shortages and stabilize prices. Second, the increased natural gas production could enhance the kingdom’s role as a key player in the global gas market, potentially impacting regional and international gas trade dynamics.
however, the success of the Jafurah project will depend on several factors, including the ability to overcome technical challenges associated with unconventional gas extraction, the availability of necessary infrastructure, and the global economic surroundings. The project also raises questions about the environmental impact of shale gas growth, particularly in terms of water usage and methane emissions.
Despite these challenges, the Jafurah gas project underscores Saudi Arabia’s commitment to modernizing its energy sector and positioning itself as a leader in the global energy transition. As the Kingdom moves forward with this enterprising initiative, it will be closely watched by industry stakeholders, policymakers, and environmental advocates alike.
the Jafurah gas project represents a transformative step for Saudi Arabia’s energy future. By enhancing natural gas production and freeing up oil for export, the Kingdom is taking proactive measures to secure its energy future and adapt to the evolving global energy landscape. As the project progresses,it will undoubtedly shape the Kingdom’s role in the global energy market and influence the broader dynamics of the oil and gas industry.
For more updates on the global energy market and Saudi Arabia’s energy initiatives, stay connected with World Today News.
