Growth in global oil demand is set to slow markedly by 2028 as the high prices and security of supply concerns will hasten the shift towards cleaner energy technologies, the International Energy Agency (IEA) said on Wednesday.
In its "Oil 2023" medium-term market report, the IEA said that global oil demand will increase by 6 percent between 2022 and 2028 to reach 105.7 million barrels per day (mb/d), supported by robust demand from the petrochemical and aviation sectors.
Annual demand growth is expected to shrivel from 2.4 mb/d in 2023 to just 0.4 mb/d in 2028, putting a peak in demand in sight, the agency said.
The petrochemical sector will remain the key driver of global oil demand growth, with liquefied petroleum gas (LPG), ethane and naphtha accounting for more than 50 percent of the rise between 2022 and 2028.
The IEA pointed out that growth is set to reverse after 2023 for gasoline and after 2026 for transport fuels overall.
"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.
The slowing growth of global oil demand is "the result of a pivot towards lower-emission sources triggered by the global energy crisis, as well as policy emphasis on energy efficiency improvements and the rapid growth in electric vehicle (EV) sales," the IEA explained in the report.
Editor: Galia
