Investing.com -- The International Energy Agency (IEA) announced on Thursday that it anticipates a decrease in global oil demand growth to 650,000 barrels per day (bpd) for the rest of 2025. This reduction comes as a result of economic challenges and record sales of electric vehicles (EV).

The Paris-based agency noted that this projected rate signifies a slowdown from the 990,000 bpd of demand growth that it recorded in the first quarter of this year, as detailed in its May oil market report. The IEA pointed out that the growing trade uncertainty is likely to impact the global economy and consequently, oil demand.

In its report, the IEA also adjusted its average demand growth forecast for 2025 to 740,000 bpd, an increase of 20,000 bpd from the previous report. Following this, the agency predicts the global supply growth to average slightly higher at 760,000 bpd in 2026.

The upward revision to the 2025 demand growth forecast is attributed to higher expected economic growth and lower oil prices promoting consumption. This is expected to counterbalance weaker imports from developing countries, particularly India, the agency explained.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.