Growth in the world’s demand for oil is expected to slow in the coming years as energy transitions advance, according to the International Energy Agency’s (IEA) new oil market outlook.
At the same time, global oil production is set to ramp up, easing market strains and pushing spare capacity towards levels unseen outside of the Covid crisis, added the report.
Oil 2024, the latest edition of the IEA’s annual medium-term market report, examined the far-reaching implications of these dynamics for oil supply security, refining, trade and investment.
Market trends
Based on today’s policies and market trends, strong demand from fast-growing economies in Asia, as well as from the aviation and petrochemicals sectors, is set to drive oil use higher in the coming years, the report found.
However, those gains will increasingly be offset by factors such as rising electric car sales, fuel efficiency improvements in conventional vehicles, declining use of oil for electricity generation in the Middle East and structural economic shifts.
As a result, the report forecasts that global oil demand, which included...
Oil markets on course for major surplus
