IEA sees global oil demand growth slowing to 650K bpd for rest of 2025

The International Energy Agency (IEA) on Thursday said that economic headwinds, combined with record sales of electric vehicles (EV), will reduce global oil demand growth to 650,000 barrels per day (bpd) for the remainder of 2025.

At that rate, demand growth will have slowed from the 990,000 bpd the IEA measured in the first quarter of this year, the Paris-based watchdog said in its May oil market report.

"Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand," the IEA said.

The IEA lifted its average demand growth forecast for 2025 as a whole to 740,000 bpd, up by 20,000 bpd from the previous report. It then sees global supply growth averaging a slightly higher 760,000 bpd in 2026.

The IEA raised its 2025 demand growth forecast because of higher expected economic growth and lower oil prices supporting consumption, offsetting weaker imports from developing countries and especially India, the agency said.