EIA: Oil demand to hold steady through 2024 after surging to four-year high

Josyana Joshua, Bloomberg February 29, 2024

(Bloomberg) – Oil demand in the U.S. surged to a four-year high in 2023 and is expected to hold near that level through 2024.

Domestic fuel consumption reached 20.23 MMbpd last year, the highest level since 2019, according to Energy Information Administration data released Thursday. U.S. demand should continue to strengthen this year to an average 20.39 MMbpd, just below 2019 levels, said the agency.

Forecasts for oil use are being closely watched by market participants, with global balances teetering into oversupply. The EIA has in recent years come under fire for underestimating U.S. demand in its weekly reports, only to revise them markedly higher in the monthly data.

In its Thursday report, the EIA raised its estimate for December jet fuel demand by 5%. The agency also revised higher its figures for year-end gasoline and diesel consumption.


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