Worldwide oil demand may increase at a lower rate and reach a peak by 2030.
The International Energy Agency (IEA) predicts that the worldwide demand for oil will grow at a slower pace, reaching a peak by 2030. Meanwhile, global production of oil is expected to increase, causing a decline in market pressures and oil reserves to a level not observed since the Covid-19 pandemic, as per the IEA's latest oil market outlook released in Paris. This could lead to a drop in oil prices by the end of the decade.
Although the growth is anticipated to slow down, global oil consumption is expected to be 3.2 million barrels per day higher in 2030 compared to 2023, if there are no stricter political measures or behavioural changes. The rise in oil demand is predominantly due to the booming economies in Asia, especially the higher oil consumption in transportation in India. Furthermore, the growing use of aviation fuel and raw materials by the petrochemical industry, particularly in China, is also expected to contribute. However, oil demand in industrialized countries is expected to continue its decline, falling from almost 46 million barrels per day in 2023 to less than 43 million barrels per day in 2030.
Consequently, the report forecasts that global oil consumption will increase from more than 102 million barrels per day in 2023 to around 106 million barrels per day by the end of the decade.
