International Energy Agency projects peak in global oil demand around 2029
Date
6/13/2024 4:09:35 AM
(MENAFN) The International energy Agency (IEA) has released its June 2024 Oil Market Report, projecting a peak in global oil demand around 2029, followed by a period of decline. In 2023, global oil demand, inclusive of biofuels, averaged approximately 102 million barrels per day (mbbl/d). Over the next few years, this demand is expected to gradually increase and stabilize near 106 mbbl/d towards the latter part of the decade.
The report emphasizes a notable expansion in global oil production capacity in the coming years, with the United States leading the surge. This increase in production capability is anticipated to surpass the growth in global oil demand until 2030. By the end of the decade, the IEA forecasts that total global oil supply capacity will reach nearly 114 mbbl/d, which is approximately 8 mbbl/d more than the projected global demand.
This outlook suggests a significant shift in the dynamics of the global oil market, with implications for energy policies, investments, and environmental considerations. The anticipated oversupply scenario raises questions about the impact on oil prices, geopolitical stability in oil-producing regions, and efforts to transition towards cleaner energy sources. As countries and industries navigate these shifts, there will likely be increased focus on sustainable energy practices, technological innovations, and international cooperation to manage the evolving challenges and opportunities in the global energy landscape.
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