End Of Rising Oil Demand Era Predicted By IEA Report

End Of Rising Oil Demand Era Predicted By IEA Report....KINDLY READ THE FULL STORY HERE▶

The International Energy Agency (IEA) anticipates a substantial surplus of oil by 2030 due to increased production and moderated demand from the clean energy transition. Global oil demand is projected to stabilize around 106 million barrels per day (bpd) by the end of the decade, while supply capacity could potentially reach 114 million bpd. This could lead to an unprecedented surplus of eight million bpd, which oil markets need to brace for, according to the IEA’s latest annual report released on Wednesday……….. CONTINUE READING

The forecast follows recent signals from the OPEC+ group indicating a phased rollback of output cuts starting in the fall, initially imposed to bolster prices amid concerns about weakening global demand. Despite ongoing demand drivers like fast-growing Asian economies, particularly in sectors such as aviation and petrochemicals, which drove demand to 102 million bpd in 2023, the IEA highlights a shift towards electric vehicles and improved fuel efficiency in conventional cars. Additionally, Middle Eastern countries are reducing oil use for electricity generation, which will help limit overall demand growth to approximately four percent by 2030.

Simultaneously, global oil production capacity is expected to surge, led by the United States and other American nations. This surge is predicted to result in an eight-million-barrel surplus, a level comparable to that seen during the COVID-19 lockdowns in 2020. The IEA warns that such high spare capacity could significantly impact oil markets, affecting economies reliant on oil production, including OPEC members and the US shale industry.

Fatih Birol, the IEA’s executive director, highlighted the slowing growth trajectory of global oil demand, attributing it to the waning impact of the pandemic rebound, advancements in clean energy transitions, and structural shifts in China’s economy. He emphasized the need for oil companies to adjust their business strategies accordingly to navigate these evolving dynamics.

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