The International Energy Agency (IEA) predicts a drop in oil consumption this year, and a surplus of crude oil will be formed in the future. The agency points to a slowdown in the growth of demand for crude oil due to the use of energy sources with lower emissions. UNN writes with reference to WSJ and Swiss Info.
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The International Energy Agency (IEA) expects a “significant surplus” in oil markets by 2030; demand growth is declining and supplies are growing.
As the energy transition evolves, with the growth of renewable energy sources and electric vehicles, “global oil demand growth should slow in the coming years
In its monthly oil market report, the IEA notes that this year's overall demand will grow by only 950,000 barrels per day compared to 2023, which is 100,000 barrels less than it had predicted in May.
According to the Paris-based organization, oil demand growth will peak by 2029 and begin to decline the following year, reaching 105.4 million barrels per day in 2030 due to the accelerated adoption of clean energy technologies.
By 2030, the total supply will reach almost 114 million barrels per day, which will exceed the projected global demand by 8 million barrels per day.
This excess production “could pave the way for lower oil prices,” the IEA emphasizes.
Recall
UNN also reported that British Foreign Secretary David Cameron called for an end to dependence on Russian oil in response to Russia's missile strikes on Ukraine's energy system.