Global Oil Demand Slows as Supply Increases, Prices Fluctuate Amid Geopolitical Tensions

Despite market imbalance and Middle East tensions, the International Energy Agency predicts a 'reasonably well supplied' oil market in 2024.

Global oil demand is slowing down, with this year's increase projected to be 1.2 million barrels per day, half of what it was in 2024, due to moderate economic growth, greater efficiency in consumption, and a boom in electric vehicles.
Supply from the United States, Brazil, Guyana, and Canada is expected to increase by 1.5 million barrels per day in 2024, contributing to a market imbalance and exerting downward pressure on prices.
Geopolitical tensions in the Middle East, including the US-UK air offensive against Houthi targets in Yemen, have markets on edge and could disrupt the flow of oil.
Despite these dynamics, the International Energy Agency (IEA) believes that the market will be 'reasonably well supplied' in 2024 due to higher-than-expected production in non-OPEC+ countries.
Oil prices have been fluctuating due to a combination of geopolitical tensions, disruptions in U.S. oil production due to cold weather, and concerns over slow demand growth in China.