The International Energy Agency (IEA) has revised its outlook for global oil demand, projecting a slowdown in growth to 650,000 barrels per day (bpd) for the rest of 2025.
In its May oil market report released Thursday, May 15, 2025, the agency attributed the deceleration to rising economic uncertainty and surging electric vehicle (EV) sales, which are increasingly eating into oil consumption.
Despite this short-term dip, the IEA slightly raised its overall 2025 demand growth forecast to 740,000 bpd, up 20,000 bpd from its previous estimate, citing stronger-than-expected economic growth and lower oil prices boosting consumption.
However, the agency also warned that weaker demand from developing nations, particularly India, may temper the gains. Looking ahead to 2026, the IEA projects global oil supply growth will outpace demand, averaging 760,000 bpd.