According to the International Energy Agency (IEA), strong demand for summer air travel, increased oil use in power generation and surging Chinese petrochemical activity has put pressure on oil supplies this summer – with China accounting for more than 70 per cent of growth.

But with the post-pandemic rebound running out of steam, lacklustre economic conditions, tighter efficiency standards and new electric vehicles weighing on use, growth is forecast to slow in 2024.

“The global economic outlook remains challenging in the face of soaring interest rates and tighter bank credit, squeezing businesses that are already having to cope with sluggish manufacturing and trade,” the IEA said.

Nevertheless, the surge in demand is expected to continue in the coming months. Despite recent increases in output from oil producers, the current level of demand is high enough that the market has remained tight, albeit not reaching prices seen last year in the wake of the...