BAKU, Azerbaijan, October 14. Global oil demand rebounded in the third quarter of 2025, rising by 750,000 barrels per day (b/d) year-on-year, according to the International Energy Agency’s (IEA) latest outlook, Trend reports.
The increase marks a recovery from the second quarter’s sluggish 420,000 b/d pace - the weakest in more than two years - which was hit by tariff-related disruptions.
Growth was supported by a turnaround in petrochemical feedstocks, with LPG and ethane consumption expanding by 140,000 b/d after a rare contraction earlier in the year. However, the IEA noted that this year’s overall demand growth remains subdued at around 700,000 b/d annually for both 2025 and 2026 — down from 980,000 b/d in 2024 and well below the pre-pandemic decade’s average of 1.3 million b/d.
The agency attributed the slowdown to muted economic conditions, improved vehicle efficiency, and the growing adoption of electric vehicles, which have constrained demand for gasoil, gasoline, and jet fuel. These three key fuels, representing about 60% of total demand, are only now returning to their pre-pandemic highs.
Meanwhile, petrochemical feedstock demand has softened despite expanding global capacity. Combined naphtha, LPG, and ethane demand grew by just 20,000 b/d in the second quarter and is expected to average a modest 230,000 b/d increase in 2025 — the smallest gain since 2011, excluding the pandemic year.
Fuel oil use also declined notably, falling by 220,000 b/d year-on-year in the first half of 2025, led by lower consumption in the Middle East and Europe. The IEA expects a slower contraction in the second half as bunker activity stabilises and regional power generation trends normalise, for an overall 2025 drop of 140,000 b/d.
