Global oil demand is forecast to rise by 2.1 million barrels per day (bpd) to 103.5 million bpd this year, Wood Mackenzie said on Thursday.
China is estimated to account for over 25% of that increase, with growth of around 530,000 bpd, according to the latest report.
Other emerging markets in Asia, as well as the US, are expected to be key growth markets this year.
The increase in demand will be ‘fueled by improving economic growth and lower interest rates,’ Alan Gelder, senior vice president of research at Wood Mackenzie, said.
‘Much of the growth [in oil demand] will be coming in the second half of the year,’ Gelder added.
The role of the refining sector in meeting demand is expected to be limited as refining capacity additions for the year are set to be modest, Wood Mackenzie states.
‘Demand growth of 600,000 bpd will be met with high utilization rates and the successful ramp up of Middle East capacity,’ according to the report.
Meanwhile, OPEC+ production cuts for the first quarter of the year are expected to slow supply growth to 1.8 million bpd.
