Lower prices and colder weather fuelling growth

In its latest report, the IEA noted that global oil demand rose in Q4 2024, driven by lower fuel prices, colder weather, and ample petrochemical feedstocks, marking the strongest growth since the second half of 2023. The IEA Oil Market Report (OMR) is recognized as one of the world’s most authoritative and timely sources of data, forecasts, and analysis of the global oil market.

Depleted reserves could see upturn in months to come

However, crude oil reserves remain tight, with U.S. stockpiles near historic lows despite slight increases in gasoline and distillate inventories. This tight supply not only sustains oil prices at stable levels but also highlights the potential need for restocking, which could further drive oil demand in the coming months, keeping the market finely balanced.

Source: IEA