IEA: Mixed future for oil markets

Demand for oil is set to rise modestly over the next five years, according to a study by a leading intergovernmental organisation.

The International Energy Agency’s (IEA) most recent Oil Market Report (OMR) suggested that demand for the world’s most important fossil fuel will reach 105 million barrels per day (bpd) in 2028 – a six percent increase on 2022 and a historic high.

The report added that much of this demand will come from the petrochemical and aviation sectors, which will fill the gap left by transportation. To be sure, with the transition to cleaner technologies such as electrical vehicles speeding up, the IEA expects global demand for road vehicle gasoline to peak this year, while general transport fuels will follow the same trajectory after 2026.

IEA executive director, Fatih Birol, explained: “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.”

“Oil producers need to pay careful attention to the gathering pace of change and calibrate their investment decisions to ensure an orderly transition.”

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