U.S. Oil Demand to Plateau in 2024, EIA Forecasts

US oil demand growth is forecast to plateau this year, in the latest bearish indicator for the market, according to the Energy Information Administration.

The agency sees US consumption holding steady at 20.3 million barrels a day, it said in a monthly report. That’s a shift from last month, when the EIA forecast demand would grow by 1% year over year. Nevertheless, global consumption is seen growing by 1 million barrels a day, putting the market in supply deficit this year, due to decreased output from OPEC and its allies.

The forecast broadly aligns with estimates by the International Energy Agency, which sees world consumption increasing by just under 1 million barrels a day, or roughly 1%, this year and next. The Organization of Petroleum Exporting Countries, meanwhile, expects world consumption to surge by 2 million barrels a day this year.

Looking ahead to 2025, the EIA sees US consumption increasing to 20.6 million barrels a day, which is in line with the prior month’s forecast. Global consumption is seen as increasing by 1.5 million barrels a day next year.