Worldwide Vitality Company: Oil demand to peak in 2029

London, June 12 (QNA) – The Worldwide Vitality Company introduced immediately that international demand for oil will peak by 2029, and can start to say no the next 12 months with america and different international locations exterior the Group of the Petroleum Exporting Nations (OPEC) pump extra provide that results in a big surplus.

The group defined, in its report, that the expansion within the demand for oil will attain its peak and stand at 105.6 million barrels per day by 2029, earlier than reducing barely in 2030 because of the elevated use of electrical vehicles, higher effectivity, and the motion. in the direction of energy era away from fossil gas sources.

The group anticipated provide to achieve round 114 million barrels per day by 2030, a rise of eight million barrels per day above the anticipated demand, with producers from exterior the US-led OPEC+ alliance accounting for 3 quarters of the power enhance.

The group identified that the prospect of a provide glut may have a wider affect, particularly on OPEC international locations that depend on oil for a big share of presidency income.

She mentioned further capability at this stage may have a major affect on oil markets, together with producing economies in and outdoors of OPEC, in addition to the shale oil business in america. .

“Forecasts on this report primarily based on the newest knowledge present a big surplus in oil provide this decade, suggesting that oil firms could wish to be certain that their methods and enterprise plans they sustain with steady modifications,” mentioned Fatih Birol, Government Director of the Worldwide. Vitality Group.

In a separate report immediately, the group lowered its expectations for oil demand development in 2024 by about 100,000 barrels per day, to 960,000, primarily based on a slowdown in consumption in developed international locations.

He identified that the shortage of financial development and the shift in the direction of inexperienced power may result in demand development of round a million barrels per day in 2025.

It ought to be famous that these expectations are a lot decrease than the expectations of OPEC, which yesterday, Tuesday, maintained demand development in 2024 at 2.25 million barrels per day and 1.85 million barrels per day in 2025.