IEA sees anaemic global oil demand growth amid tariff turmoil
Consumption in emerging markets was "particularly lacklustre", it added.
It lowered its forecast for oil-demand growth for 2025 as a whole to 0.7 mbd, "its lowest rate since 2009" apart from when the Covid pandemic shut large swathes of the global economy in 2020.
"Although it may be premature to attribute this slower growth to the detrimental impact of tariffs manifesting themselves in the real economy, the largest quarterly contractions occurred in countries that found themselves in the crosshairs of the tariff turmoil," the IEA said.
The drops were particularly sharp in China, Japan, South Korea and Mexico, all targeted by Trump with stiff tariffs.
Oil demand in Europe and other Asian emerging economies, also targeted by Trump, proved more resilient.
The IEA sees the oil production exceeding demand in 2025, with output rising by 2.1 mbd to 105.1 mbd on average, while demand averages 103.7 mbd.
In 2026, it sees demand rising by a tepid 0.72 mbd to 104.4 mbd. Meanwhile supply is expected to rise by 1.3 mbd to 106.4 mbd.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Local France
19 minutes ago
- Local France
EU still seeking trade deal after new Trump tariff threat
The US leader threw months of painstaking talks into disarray on Saturday by announcing he would hammer the bloc with the sweeping tariffs if no agreement is reached by August 1. Heading into Brussels talks with EU trade ministers, the bloc's trade chief Maros Sefcovic said despite Trump's latest threat he "felt" Washington was ready to continue negotiating -- and he planned to speak with his US counterparts later in the day. Sefcovic, who is leading talks on behalf of the EU's 27 states, said reaching a deal remained the priority -- while acknowledging calls from countries including key power France for the bloc to flex its muscles in negotiations. "The current uncertainty caused by unjustified tariffs cannot persist indefinitely," Sefcovic told reporters, adding the EU was preparing for "all outcomes", including "well-considered, proportionate countermeasures". European Commission chief Ursula von der Leyen on Sunday delayed a package of retaliatory measures over US tariffs on steel and aluminium -- a day before they were set to kick in -- as a sign of goodwill. But diplomats said an additional package of reprisal measures will be presented to trade ministers Monday that could be rolled out if Trump imposes the 30-percent tariffs. The EU threatened in May to target a much bigger swathe of US goods including cars and planes if talks fail. Diplomats said the finalised list was expected to be worth 72 billion euros. Advertisement 'Prepare for war' France's trade minister Laurent Saint-Martin said retaliation plans should be drawn up with "no taboos" adding the weekend's setback called for a rethink of the bloc's tactics. "If you hold anything back, you are not strengthening your hand in negotiations," he said at the Brussels talks. "Obviously, the situation since Saturday requires us to change our strategy." Denmark's foreign minister Lars Løkke Rasmussen, whose country currently holds the EU presidency, said Brussels needed to show its strength. "We don't want any kind of trade war with the US... we don't want to escalate things," he said. "We want a deal but there's an old saying: 'if you want peace, you have to prepare for war'," he said ahead of the talks. EU nations -- some of which export far more to the United States than others -- have sought to stay on the same page over how strong a line to take with Washington in order to get a deal. French President Emmanuel Macron on Saturday urged von der Leyen's commission to "resolutely defend European interests" and said the EU should step up preparation for countermeasures. German Chancellor Friedrich Merz agreed and said he had spoken to Macron, Trump and von der Leyen in the past few days and would "engage intensively" to try to find a solution. Advertisement Deals and duties Brussels had readied duties on US goods worth around 21 billion euros in response to the levies Trump slapped on metal imports earlier this year. But it held off on those measures to give space to find a broader trade agreement -- and has now suspended them again until early August. Since returning to the presidency in January, Trump has unleashed sweeping stop-start tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn. But his administration faces pressure to secure deals with trading partners after promising a flurry of agreements. So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China. The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent last Wednesday, but Trump pushed back the deadline to August 1. The EU tariff is markedly steeper than the 20 percent levy Trump unveiled in April -- but paused initially until mid-July. Thomas Byrne, the minister for Ireland whose pharmaceutical industry puts it on the front line of Trump's trade war along with industrial powerhouse Germany, called for Europe to "work our hardest" for a deal before August 1. "That gives us certainty, it protects investments, it protects jobs," he said.
France 24
an hour ago
- France 24
Donald Trump says will send US patriot missiles to Ukraine
01:48 14/07/2025 EU still seeks trade deal, delaying countermeasures after new Trump tariff threat Europe 13/07/2025 Several killed in Russian drone strikes on Ukraine Europe 12/07/2025 Russian drone attack: The goal is to 'terrorise the Ukrainian population' Europe 12/07/2025 Europe needs infrastructure overhaul to tackle summer heatwaves, expert says Europe 11/07/2025 France is Russia's 'main enemy' says head of French army this Friday Europe 11/07/2025 EU orders AI companies to clean up their act, stop using pirated data Europe 11/07/2025 In Lithuania, baby seals have been released into the Baltic Sea Europe 11/07/2025 Zelensky appeals to allies for investment & defense aid in Rome Europe 11/07/2025 Bosnia commemorates massacre of more than 8,000 Muslims 30 years ago Europe
Euronews
an hour ago
- Euronews
China doesn't need NVIDIA chips for military power, CEO says
NVIDIA CEO Jensen Huang said China doesn't need his company's semiconductor chips to boost its military power. China 'simply can't rely' on American technologies because 'it can be limited at any time,' Huang said in an interview with CNN. There's 'plenty of computing power in China already,' he said, adding that the country has developed hundreds of supercomputers that train artificial intelligence (AI) models for the military. In response to a question about winning the global AI race, Huang said he believes it doesn't matter whether the AI chatbot everyone uses is Chinese or American. 'The question of does it really matter, no; but in a final analysis, I believe it is core to the American spirit to want to be the world's best in computing technology,' he said. US President Donald Trump has threatened global tariffs on allies and competitors, in which he says is a bid to boost the American economy. Huang called Trump's actions 'not a goal, it's a tactic,' which goes against getting companies around the world, including in China, to be reliant on the American tech stack, a combination of programming languages, frameworks and databases used to build any software application. Huang compared blocking China's access to the US tech stack to the recent Chinese ban on rare earth mineral exports to the US, in that it spurred America to develop their own solutions instead. (These minerals are used to manufacture computer chips like NVIDIA's). So far, the Trump administration has exempted foreign-made semiconductor products from its Liberation Day tariffs, but the President has threatened to impose levies against them several times. China now has a 30 per cent tariff rate across all its goods, a significantly smaller tariff than the initial 125 per cent that was proposed by the Trump administration earlier this year. NVIDIA was the first company to reach $4 trillion (€ 3.42 trillion) valuation last week because of its semiconductor chips that are supporting the AI industry.
