Worldwide demand for oil has increased recently; know why
International Energy Agency says demand will rise by 2.4m barrels of oil daily in 2023 to record 102.3m.
The worldwide rise in need for oil is “in sight” and could arrive before the end of this decade, the international energy watchdog has said.
The International Energy Agency stated the bounce back in oil need that followed the easing of Covid conditions was probably to end this year, and development would delay from next year.
A potential worsening in the international economy and the long-term shift to cleaner energy sources are predicted to break demand.
The IEA’s executive director, Fatih Birol, stated: “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.”
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Global oil demand would increase by 2.4m barrels each day (bpd) in 2023 to a record 102.3m, the IEA said in its monthly statement on Wednesday.
However, the Paris-based agency predicts economic headwinds to ease growth to 860,000 bpd next year and raise the use of electric automobiles to help to lower that to 400,000 bpd in 2028 for an overall market of 105.7m.
“The slowdown has been hastened by Russia’s invasion of Ukraine amid heightened energy security concerns and by governments’ post-Covid recovery spending plans, with more than $2tn mobilised for clean energy investments by 2030,” the IEA stated.
The need for oil from flammable fossil fuels, besides biofuels, petrochemical feedstocks and other non-energy uses, would probably peak at 81.6m bpd in 2028.
“Oil producers need to pay careful attention to the gathering pace of change and calibrate their investment decisions to ensure an orderly transition,” Birol stated.
