IEA predicts oil prices to climb in 2021, but demand to plummet in 2024

The International Energy Agency (IEA) predicts that oil prices could rise further this year due to OPEC+ supply cuts and rising global demand, potentially leading to inventory draws in the third and fourth quarters. However, the IEA also forecasts a sharp slowdown in demand growth for 2024, citing lackluster macroeconomic conditions, a post-pandemic recovery losing momentum, and the increasing adoption of electric vehicles. The IEA's demand growth forecast for 2024 is 150,000 bpd lower than last month's estimate and differs from OPEC's more optimistic projection. The IEA expects demand to expand by 2.2 million bpd in 2023, while OPEC sees a rise of 2.44 million bpd.