IEA: Economic outlook will curb further growth in oil demand from next year

The growth in oil demand driven by the recovery from the Covid-19 pandemic will come to an end this year. The outlook for the global economy and the shift to cleaner fuels will curb demand from 2024, the International Energy Agency (IEA) said today in its regular monthly report on the oil market. The agency also forecast for the first time that global demand will peak „before the end of the decade“.

„The shift to a clean energy economy is gathering pace, with a peak in global oil demand in sight before the end of this decade. Electric vehicles, energy efficiency and other technologies are making progress,“ IEA Executive Director Fatih Birol said, according to Reuters.

Global oil demand will increase by 2.4 million barrels per day this year to a record 102.3 million barrels per day, the IEA said. But the agency expects economic pressures to reduce growth to 860,000 barrels per day next year, and greater use of electric vehicles to help slow it to 400,000 barrels per day in 2028, when total demand will reach 105.7 million barrels per day.