International Energy Agency: Global oil demand growth will slow significantly

The International Energy Agency's medium-term 2023 oil Market report, released on June 14, said that global oil demand growth will slow significantly in the coming years as the transition to clean energy accelerates.

Global oil demand, supported by strong demand from the petrochemical and aviation sectors, is forecast to grow 6 per cent to 105.7 million barrels per day between 2022 and 2028. However, average annual global oil demand growth will slow in the coming years, shrinking from 2.4 million barrels a day this year to 400,000 b/d in 2028. One big reason is that oil demand from the transport sector will start to decline after 2026 as electric vehicles, biofuels increase and fuel economy improves.

The transition to a clean energy economy is accelerating and global oil demand is expected to peak before the end of the decade with the development of electric vehicles, improved energy efficiency and other technological advances, IEA Director Birol said.