The security of global energy supplies remains a major focus for policy makers as geopolitical tensions escalate and oil markets undergo a significant period of transformation, IEA said.

After several weeks of unpredictable see-sawing, oil markets are back to their usual self. The IEA and OPEC are publicly arguing about the future of oil demand, U.S. interest rate cuts are still not happening, and questions remain about the strength of summer gasoline demand. That said, a positive outlook in U.S. inflation data might have helped to tilt the balances slightly in favor of oil bulls, with Brent closing the week around $83 per barrel, OilPrice reported. 

Signs that inflation may be easing in the U.S. have given oil markets a bullish hue this week, but uncertainty over demand remains. US crude imports rise to 6-year high.According to the EIA, US crude imports rose to their highest since 2018 last week at 8.304 million b/d, boosted by the first cargoes from Canada’s TMX pipeline reaching PADD 5 refiners and Mexican crude exports rebounding to almost 1 million b/d. 

IEA paints bleak picture for oil demand.The International Energy Agency predicts a 2029 peak in global oil demand at 105.6 million b/d, predicting a price slump as it believes global supply capacity will hit almost 114 million b/d by the end of this decade. 

OPEC defies oil pessimists, says demand grows for decades. Calling the IEA’s report ‘dangerous commentary’, the OPEC secretary general Haitham al-Ghais stated he doesn’t see a peak in oil demand until at least 2045, saying consumption will grow to a hefty 116 million b/d. 

/OilPrice, IEA/