The IEA claimed that global demand is expected to grow at half the rate that has been realized over the past two years. This comes as a result of the rise of electric vehicles on the market, thereby phasing out fuel-powered cars.

“Growth in the world’s demand for oil is set to slow almost to a halt in the coming years,” the report read. “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.”

Worldwide oil production is also expected to decline as supply levels remain sufficient to meet changes in demand. The IEA expects global fuel consumption to fall to 400,000 barrels a day in 2028, with the demand for new barrels hovering around 105.7 million barrels per day around that time.

The post Oil Demand Growth Expected to Slow, IEA Claims appeared first on theprimarymarket.com.

The IEA’s report predicts that the demand will come close to 102 million barrels per day in 2023, which is two million barrels more compared to the previous year. The increased demand will be met with a supply deficit caused by surprising oil production cuts announced by OPEC+ countries.

“Oil market balances were already set to tilt into a substantial deficit in the second half of this year, but the new cuts risk further tightening balances and pushing up oil prices at a time when inflationary pressures are already hurting vulnerable consumers,” the IEA says in the report.

According to IEA, the increased prices of oil will affect consumers and hamper economic growth. 

“Consumers confronted by inflated prices for basic necessities will now have to spread their budgets even more thinly. This augurs badly for the economic recovery and growth,” it added.

OPEC+ countries agreed in early April to cut their oil production by more than 1.5 million barrels per day throughout the end of the year. Oil producers that are not part of OPEC are expected to ramp up their production in the same period, but the increase will likely not be enough to satisfy the demanding oil market.

The post IEA Expects Record Oil Demand and Surging Prices in 2023 appeared first on theprimarymarket.com.

The IEA claimed that global demand is expected to grow at half the rate that has been realized over the past two years. This comes as a result of the rise of electric vehicles on the market, thereby phasing out fuel-powered cars.

“Growth in the world’s demand for oil is set to slow almost to a halt in the coming years,” the report read. “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.”

Worldwide oil production is also expected to decline as supply levels remain sufficient to meet changes in demand. The IEA expects global fuel consumption to fall to 400,000 barrels a day in 2028, with the demand for new barrels hovering around 105.7 million barrels per day around that time.

The post Oil Demand Growth Expected to Slow, IEA Claims appeared first on theprimarymarket.com.

The IEA’s report predicts that the demand will come close to 102 million barrels per day in 2023, which is two million barrels more compared to the previous year. The increased demand will be met with a supply deficit caused by surprising oil production cuts announced by OPEC+ countries.

“Oil market balances were already set to tilt into a substantial deficit in the second half of this year, but the new cuts risk further tightening balances and pushing up oil prices at a time when inflationary pressures are already hurting vulnerable consumers,” the IEA says in the report.

According to IEA, the increased prices of oil will affect consumers and hamper economic growth. 

“Consumers confronted by inflated prices for basic necessities will now have to spread their budgets even more thinly. This augurs badly for the economic recovery and growth,” it added.

OPEC+ countries agreed in early April to cut their oil production by more than 1.5 million barrels per day throughout the end of the year. Oil producers that are not part of OPEC are expected to ramp up their production in the same period, but the increase will likely not be enough to satisfy the demanding oil market.

The post IEA Expects Record Oil Demand and Surging Prices in 2023 appeared first on theprimarymarket.com.