LONDON, June 12 (Reuters) – Global oil demand will peak in 2029 and start to decline the following year, the International Energy Agency (IEA) said on Wednesday, as supply capacity for Oil is expected to far exceed demand by the end of the decade.
The IEA, headquartered in Paris, estimates in its annual report that supply capacity will reach nearly 114 million barrels per day (bpd) by 2030, or 8 million bpd more than demand. planned.
“Projections in this report, based on the most recent data, show that a major oversupply will emerge during this decade, suggesting that oil companies may want to ensure that their strategies and plans business leaders are ready for the changes taking place,” said IEA Executive Director Fatih Birol.
According to the IEA, growth in oil demand will peak at 105.6 million bpd by 2029, before declining slightly in 2030 due to increased use of electric cars, better efficiency and the abandonment of oil in favor of electricity production.
The IEA cut its oil demand growth forecast for 2024 by 100,000 bpd to 960,000 bpd, citing low consumption in developed countries. (Reporting Noah Browning; French version Mathias de Rozario, edited by Blandine Hénault)
©2024 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.