The International Energy Agency on Friday cut its forecast for 2024 oil demand growth, citing “exceptionally weak” OECD deliveries, a largely complete post-Covid-19 recovery and electric vehicle fleets. Referred to the extension.

In its latest monthly oil market report, the IEA said it cut its forecast for oil demand growth in 2024 by about 100,000 barrels per day (bpd) to 1.2 million bpd.

The world energy watchdog said it expected expansion to slow further to 1.1 million bpd next year “as the post-Covid-19 recovery runs its course.”

The IEA report comes amid a recovery in oil prices on heightened Middle East tensions, with energy market participants closely watching the possibility of supply disruptions from the oil-producing region.

Iran, a member of the Organization of the Petroleum Exporting Countries, has vowed to retaliate after Israel was accused of bombing its embassy in the Syrian capital Damascus earlier this month.

The attack has heightened tensions in the region, which is already reeling from the ongoing war between Israel and Hamas. Israel has not claimed responsibility for the attack.

International standard Brent Crude futures for June delivery were up 0.8 percent at $90.45 a barrel at 9:30 a.m. in London on Friday, while U.S. West Texas Intermediate futures for May delivery were up about 1 percent at $85.84 a barrel. Traded.

“We’re seeing an increase in (electric vehicle) sales, especially in China and Europe, really driving demand for gasoline, but also in the United States,” said Toral Bosoni, of the Oil Industry and Markets Division at the IEA. head, told CNBC’s “Street Signs Europe” on Friday.

“There’s been a lot of talk about sales not growing as much as might have been expected, but EV sales in the fleet and increased fuel efficiency are reducing gasoline demand. , at least in advanced economies and especially in China.”

Asked about some of the main concerns regarding the security of oil supplies, Bosnia replied, “We are obviously watching the Middle East very closely. The constant tanker attacks in the Red Sea are a major concern, but this escalating tensions between Iran and Israel. And then we’re seeing tensions between Russia and Ukraine continue, with attacks on Russian refineries.”

“So, there are several stress points in the oil market today that we are watching very closely that could have major implications… if there is a significant disruption,” he added.