Weaker economic growth and higher interest rates contribute to slowdown

  • Global oil-demand growth expected to slow next year
  • Weaker economic growth across major economies contributing to slowdown
  • Demand growth expected to halve to 1.1 million barrels a day
  • Average demand seen at 102.8 million barrels a day
  • Outlook for 2024 raised by 130,000 barrels a day
  • Loss of oil-demand growth momentum attributed to higher interest rates and fading rebound from Covid-induced lows

Global oil-demand growth is expected to slow next year, reflecting weaker economic growth across major economies in the wake of higher interest rates, according to the International Energy Agency (IEA). The Paris-based organization stated in its monthly report that demand growth is projected to halve to 1.1 million barrels a day in 2022, with average demand reaching 102.8 million barrels a day. However, the outlook for 2024 has been raised by 130,000 barrels a day compared to previous estimates. The IEA attributes the loss of oil-demand growth momentum to the deterioration in the macroeconomic climate, driven by higher interest rates and the fading rebound from Covid-induced lows.

Public Companies: International Energy Agency (N/A)
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Factuality Level: 8
Justification: The article provides information from the International Energy Agency’s monthly report, which suggests that global oil-demand growth is expected to slow next year due to weaker economic growth and higher interest rates. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It also does not include any digressions, unnecessary background information, or details tangential to the main topic. The information provided is based on the report from a reputable organization, making it reliable and accurate. However, the article is short and lacks in-depth analysis or additional context, which is why it is not rated higher.

Noise Level: 7
Justification: The article provides a brief summary of the International Energy Agency’s report on global oil-demand growth. However, it lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on the expected slowdown in demand growth due to weaker economic growth and higher interest rates, without exploring the consequences or potential solutions. The article also does not provide any scientific rigor or intellectual honesty, as it does not question or critically analyze the information presented.

Financial Relevance: Yes
Financial Markets Impacted: Oil markets and companies in the energy sector

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the expected slowdown in global oil-demand growth due to weaker economic growth and higher interest rates. While there is no mention of an extreme event, the information is relevant to financial markets, particularly oil markets and companies in the energy sector.

Reported publicly: www.marketwatch.com