UBS: Norway's oil demand has not fallen despite EV boom

Norway has seen a rapid expansion of electric mobility in recent years, partly thanks to very generous government support. Eight out of ten newly registered cars last year were fully electric. However, oil demand has not fallen as expected, according to a market report from Swiss bank UBS.

Last year, exactly 82.4% of all new cars sold in Norway were fully electric, compared with an EV market share of 79.3% the year before. This year's share is even above 90%, reports the Oilprice website. According to UBS, however, the impact on oil demand there is surprisingly negligible.

Norway is a global leader in the development of electric mobility, partly thanks to generous government financial incentives. These are partly funded by the Government Pension Fund Global, one of the world's largest funds. Norway's revenues from oil and natural gas sales flow into it.

Norwegians, like consumers in other countries, are concerned about the real-world range of electric vehicles, the bank says in its report. Many therefore prefer to choose hybrid vehicles for longer trips, or opt for cars with internal combustion engines in such cases.

The bank also notes that the barely perceptible drop in oil demand in a country where electric vehicles account for more than 90% of the new-car market should be a warning sign for those predicting a sharp decline in oil demand in the coming years precisely because of the growth of electric mobility. It adds that its global outlook continues to point to growth in oil demand over the coming years.