Global Oil Demand to Peak: IEA

Global oil demand growth will trickle nearly to a halt in the coming years and peak this decade, according to the International Energy Agency, with Chinese consumption set to slow down after an initial pent-up recovery.  
“The shift to a clean energy economy is picking up pace, with a peak in global oil demand in sight before the end of this decade as electric vehicles, energy efficiency and other technologies advance,” IEA Executive Director Fatih Birol said in a statement, CNBC reported.
In its latest medium-term market report, published on Wednesday, the agency forecasts that global oil demand under current market and policy conditions will rise by 6% from 2022 to reach 105.7 million barrels per day in 2028 on the back of the petrochemical and aviation sectors.
Annual demand growth, however, will thin down from 2.4 million barrels per day this year to 400,000 barrels per day in 2028.
“The downturn in advanced economies renders the global outlook even more dependent on China’s post-Covid pandemic reopening being able to maintain its early momentum, which should eventually lift global trade and manufacturing,” the agency said, while stressing Beijing’s “pent-up” consumption will peak mid-2023 after a 1.5 million-barrels-per-day rebound but lose momentum to just an average 290,000 barrels per day year-on-year from 2024 to 2028.