The International Energy Agency (IEA) said that economic challenges and record electric vehicle sales will reduce global oil demand growth to 650,000 barrels per day (bpd) for the remainder of 2025.
At that pace, demand growth will have slowed from the 990,000 bpd recorded by the IEA in the first quarter of this year, according to the Paris-based watchdog's May oil market report.
According to the IEA, “rising trade uncertainty will weigh on the global economy and, by extension, on oil demand.”
The agency raised its average demand growth forecast for 2025 to 740,000 bpd, 20,000 bpd higher than in the previous report. It then expects a slightly higher average global supply growth of around 760,000 bpd in 2026.
The IEA revised its 2025 demand growth forecast upward due to stronger expected economic growth and falling oil prices, which support consumption and help offset weaker imports in developing countries, particularly India.
