BAKU, Azerbaijan, March 18. BMI, a Fitch Solutions company, states that the outlook for global oil demand in 2024 presents a mixed picture, Trend reports.
Developed markets (DMs) are anticipated to experience a decline, driven by factors such as enhanced energy efficiency, increasing electrification of transportation, and a broader transition to alternative fuels.
Notably, Europe stands out as a region witnessing accelerated oil demand destruction due to these structural shifts. The sharp deceleration in economic activity and pronounced weakness in the industrial sector further contribute to downside risks for DM oil demand this year.
Conversely, emerging markets (EMs), excluding Mainland China, are poised for growth.
BMI's analysis suggests that regional markets have rebounded in demand following the outbreak of the Ukraine war, a trend that is expected to continue.
Additionally, accelerated consumption in various countries across Asia and Sub-Saharan Africa contributes to this positive outlook.
Despite the anticipated choppiness in the macroeconomic landscape throughout the second quarter, BMI holds a more optimistic view heading into 2025. Economic activity is expected to pick up pace, thereby bolstering oil demand globally.
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