Global Oil Demand: Growth Prospects and Challenges Ahead
Global oil demand is projected to grow until the end of this decade, even as it peaks in China by 2027, according to the International Energy Agency. The IEA's projections contrast with OPEC's view, highlighting geopolitical risks and the slow adoption of electric vehicles impacting U.S. consumption.
The International Energy Agency (IEA) has forecasted that global oil demand will continue to grow until around 2029, despite a peak in China expected by 2027. This projection contrasts with OPEC's longer-term growth outlook and raises concerns over geopolitical risks affecting oil supply security.
The IEA's annual report predicts oil demand to crest at 105.6 million barrels per day by 2029, with a slight decline by 2030. Meanwhile, global production capacity is expected to rise significantly, potentially buffering against major supply disruptions, though recent conflicts emphasize potential geopolitical threats.
China, facing economic hurdles and a shift towards electric vehicles, is anticipated to see its oil demand peak by 2027. Conversely, slower EV adoption and cheaper gasoline in the United States have led to upward revisions of U.S. oil demand forecasts for 2030.
(With inputs from agencies.)
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