The International Energy Agency IEA, which updates its forecasts about the global energy market, oil He shared his new expectations about the The IEA expects the growth in oil demand to slow in the next 5 years due to the growing interest in electric vehicles and renewable energy.
The Energy Agency said in a report released today that Asian economies will continue to support oil demand. In petroleum-based fuel types, industrial use expects the demand for jet fuel and naphtha types to come to the fore.
India Will Overtake China!
The expected recovery in China, which has great problems in production due to the pandemic, has not yet taken place. The IEA made a forecast on India, noting the slowdown in demand from the largest oil importer. According to the report, India will overtake China in oil demand in 2027.
“Global Oil Demand Frontier Approaches Peak”
Although the main expectation of the International Energy Agency remains unchanged, the transition to non-fossil fuels is happening faster than predicted. Experts stated that the pandemic and the Russian-Ukrainian war are pushing the process forward.
Speaking to the press, Fatih Birol, one of the IEA executives, summarized the situation with the following sentence:
Fatih Birol, Executive Director of the IEA
The transition to clean energy continues to gain momentum. We expect global oil demand to reach its historic peak before the 2030s.
According to the report shared by the agency, the demand for oil will not return to its previous level after 2028. Renewable energy and electric motors will significantly reduce the need for fossil fuels.
Expectations Improve After the Pandemic
The wounds of the COVID-19 pandemic are healing faster than expected. For this reason, the IEA decided to update its year-end forecasts. According to the new report, the daily oil demand increase expectation increased from 200,000 barrels to 2.4 million. The IEA has updated its supply expectation from +200,000 barrels to +1 million barrels. Experts expect more than half of the increase in demand to come from China.
Brent Oil Price
Despite Saudi Arabia’s decision to reduce production by 1 million barrels per day, the oil price did not increase as expected.
Brent oil, which received a reaction from the $ 72 support at the beginning of the week, is pushing the $ 75 limit as of now.
