BAKU, Azerbaijan, April 13. The International Energy Agency (IEA) predicts that annual oil consumption in OECD Europe will shrink by 70,000 b/d in 2024 to 45.7 mb/d, Trend reports.
Unusually warm winter temperatures in OECD Europe led to a slower-than-expected growth in oil demand, according to the IEA. Gasoil use for heating was curtailed, resulting in a year-on-year increase of 90,000 b/d in the first quarter of 2024, which was 20,000 b/d lower than previously estimated.
Despite quarterly gains in gasoil, gasoline, and jet/kerosene, declines in LPG/ethane and naphtha highlighted ongoing challenges in the region's petrochemical industry. The sector continues to grapple with oversupplied global polymer markets.
The IEA predicts that annual oil consumption in OECD Europe will decrease, with modest increases in gasoline, jet/kerosene, and fuel oil, along with marginal declines in LPG/ethane and naphtha.
The closure of loss-making production capacity in the petrochemical sector may signal a bottoming out or potential recovery, following last year's collapse in demand to multi-decade lows.
Looking ahead to 2025, the IEA anticipates a slight slowdown to 45.6 mb/d, driven by improving economic conditions and a lower interest rate environment. Monetary easing measures by central banks, including a likely policy rate cut by the ECB in June, could further support recovery efforts.