Latest news with #Oil2025
Yahoo
4 hours ago
- Business
- Yahoo
IEA Doubles Down On Peak Oil Demand Forecast
A peak in global oil demand is still on the horizon, the International Energy Agency (IEA) said on Tuesday, doubling down on its forecast that demand will plateau by the end of the decade. China's oil demand, which increased by a cumulative 6 million barrels per day (bpd) in the decade to 2024, is set to peak earlier than previously expected, the agency said in its annual Oil 2025 report for the medium term. While China – the world's top crude oil importer – accounted for 60% of the global increase in oil consumption in 2015-2024, 'the picture to 2030 looks very different,' the IEA said. China's demand is on track to peak in 2027 – two years earlier than previously thought – amid 'an extraordinary surge in EV sales, the continued deployment of trucks running on liquefied natural gas (LNG), as well as strong growth in the country's high-speed rail network, along with structural shifts in its economy.' Global oil demand is forecast to rise by 2.5 million bpd from 2024 to 2030, reaching a plateau around 105.5 million bpd by the end of the decade, per the agency's latest estimates. Annual global growth will slow from about 700,000 bpd in 2025 and 2026 'to just a trickle over the next several years, with a small decline expected in 2030, based on today's policy settings and market trends,' the IEA said. The agency expects below-trend economic growth, weighed down by global trade tensions and fiscal imbalances, and accelerating substitution away from oil in the transport and power generation sectors. At the same time, the increase in global oil supply is 'set to far outpace demand growth in coming years,' according to the agency. 'Based on the fundamentals, oil markets look set to be well-supplied in the years ahead – but recent events sharply highlight the significant geopolitical risks to oil supply security,' IEA Executive Director Fatih Birol said. If no major supply disruptions occur, the oil market will be comfortably supplied through 2030, the agency reckons, but warned that 'significant uncertainties remain, especially given rising geopolitical risks and heightened trade tensions.' The IEA's 'peak demand on the horizon' narrative once again clashes with OPEC's view of growing oil demand at least into the 2040s. Just last week, OPEC Secretary General, Haitham Al Ghais, said that oil demand would continue growing over the coming decades as the world's population increases. 'Simply put, there is no 'peak in oil demand' on the horizon,' Al Ghais said at The Global Energy Show Canada in Calgary, Canada. By Michael Kern for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Global oil demand to dip in 2030, first drop since Covid: IEA
Global oil demand will fall slightly in 2030, its first drop since the 2020 Covid pandemic, the International Energy Agency said Tuesday. In an annual outlook for the oil market, the Paris-based agency cited sluggish economic growth, global trade tensions, the rise of electric cars and the shift away from crude to produce power. Annual demand growth will slow from around 700,000 barrels per day (bpd) in 2025 and 2026 "to just a trickle over the next several years, with a small decline expected in 2030", the IEA said. Total demand is forecast to reach 105.5 million bpd in 2030 after peaking at 105.6 million bpd in 2029. Oil demand dropped dramatically in 2020, when countries locked down and shut their borders during the Covid pandemic, falling to 91.7 million bpd before steadily growing again in the following years. Demand in the world's top consumer, the United States, is expected to peak this year and start to decline in 2026 while consumption in China, the top importer of crude, will fall from 2028, according to the "Oil 2025" report. Demand in the Middle East will also peak in 2027 and decline the following year. Saudi Arabia will post the "single largest decline in oil demand for any country" in absolute terms through 2030 as the kingdom replaces crude with gas and renewable energy to produce power, the IEA said. - US and Saudis to lead output - The report comes as oil prices have surged since Israel launched air strikes against Iran last week, prompting Tehran to fire missiles back at its arch foe. The price increases "are not driven by the fundamentals", IEA executive director Fatih Birol said in a news conference. "We have a lot of supply oil in the market. Demand is much weaker than the supply." "We don't expect high oil prices to be with us for a very long time," Birol said, adding that the IEA stood ready to act if there are any supply disruptions. While the conflict "focuses attention on immediate energy security risks", the IEA said oil supply growth will "far outpace" the increase in demand in coming years. World oil production capacity is forecast to rise by 5.1 million bpd -- double the pace of demand -- to 114.7 million bpd by 2030, the report found. "Combined, Saudi Arabia and the United States will contribute 40 percent to total global oil capacity growth in the forecast period," it said. nal-lth/cw Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
6 hours ago
- Business
- Time of India
Crude oil demand set to decline in 2030: IEA sees first drop since Covid, supply growth to be led by US and Saudi Arabia
Global oil demand will decline slightly in 2030 for the first time since the 2020 Covid shock, the International Energy Agency (IEA) said on Tuesday, as slower economic growth, electric vehicle adoption, and energy transition efforts reshape the market. In its annual Oil 2025 outlook, the Paris-based agency forecast that global oil consumption would peak at 105.6 million barrels per day (bpd) in 2029 before dipping to 105.5 million bpd the following year. The shift marks a dramatic change from the post-pandemic recovery, when demand surged after a 2020 collapse to 91.7 million bpd during lockdowns, AFP reported. 'Annual demand growth will slow from around 700,000 bpd in 2025 and 2026 to just a trickle over the next several years,' the report stated, adding that major oil-consuming economies will reach peak usage before the end of the decade. The United States, the world's largest oil consumer, is projected to see demand peak in 2025, followed by a decline starting in 2026. China, the top crude importer, is expected to follow suit with a decline beginning in 2028. Middle East demand will peak in 2027, then begin falling in 2028, with Saudi Arabia forecast to post the "single largest decline in oil demand for any country" in absolute terms. The drop comes as the kingdom accelerates efforts to replace oil-fired power generation with gas and renewables. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Tired of Your 2BHK Looking the Same? HomeLane Get Quote Undo Meanwhile, the IEA noted that recent oil price spikes — triggered by conflict between Israel and Iran — are not backed by market fundamentals. 'We have a lot of supply in the market. Demand is much weaker than the supply,' IEA Executive Director Fatih Birol said, adding that the agency does not expect elevated prices to persist. The IEA, he said, is prepared to act if supply disruptions occur. Despite short-term risks, supply growth is expected to outpace demand through 2030. Global oil production capacity is projected to rise by 5.1 million bpd to 114.7 million bpd, nearly twice the growth rate of demand. Saudi Arabia and the United States together will account for 40% of that capacity increase, the agency said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
France 24
6 hours ago
- Business
- France 24
Global oil demand to dip in 2030, first drop since Covid: IEA
In an annual outlook for the oil market, the Paris-based agency cited sluggish economic growth, global trade tensions, the rise of electric cars and the shift away from crude to produce power. Annual demand growth will slow from around 700,000 barrels per day (bpd) in 2025 and 2026 "to just a trickle over the next several years, with a small decline expected in 2030", the IEA said. Total demand is forecast to reach 105.5 million bpd in 2030 after peaking at 105.6 million bpd in 2029. Oil demand dropped dramatically in 2020, when countries locked down and shut their borders during the Covid pandemic, falling to 91.7 million bpd before steadily growing again in the following years. Demand in the world's top consumer, the United States, is expected to peak this year and start to decline in 2026 while consumption in China, the top importer of crude, will fall from 2028, according to the "Oil 2025" report. Demand in the Middle East will also peak in 2027 and decline the following year. Saudi Arabia will post the "single largest decline in oil demand for any country" in absolute terms through 2030 as the kingdom replaces crude with gas and renewable energy to produce power, the IEA said. US and Saudis to lead output The report comes as oil prices have surged since Israel launched air strikes against Iran last week, prompting Tehran to fire missiles back at its arch foe. The price increases "are not driven by the fundamentals", IEA executive director Fatih Birol said in a news conference. "We have a lot of supply oil in the market. Demand is much weaker than the supply." "We don't expect high oil prices to be with us for a very long time," Birol said, adding that the IEA stood ready to act if there are any supply disruptions. While the conflict "focuses attention on immediate energy security risks", the IEA said oil supply growth will "far outpace" the increase in demand in coming years. World oil production capacity is forecast to rise by 5.1 million bpd -- double the pace of demand -- to 114.7 million bpd by 2030, the report found. "Combined, Saudi Arabia and the United States will contribute 40 percent to total global oil capacity growth in the forecast period," it said.
New Straits Times
6 hours ago
- Business
- New Straits Times
Global oil demand to dip in 2030, first drop since Covid: IEA
PARIS: Global oil demand will fall slightly in 2030, its first drop since the 2020 Covid pandemic, the International Energy Agency said Tuesday. In an annual outlook for the oil market, the Paris-based agency cited sluggish economic growth, global trade tensions, the rise of electric cars and the shift away from crude to produce power. Annual demand growth will slow from around 700,000 barrels per day (bpd) in 2025 and 2026 "to just a trickle over the next several years, with a small decline expected in 2030", the IEA said. Total demand is forecast to reach 105.5 million bpd in 2030 after peaking at 105.6 million bpd in 2029. Oil demand dropped dramatically in 2020, when countries locked down and shut their borders during the Covid pandemic, falling to 91.7 million bpd before steadily growing again in the following years. Demand in the world's top consumer, the United States, is expected to peak this year and start to decline in 2026 while consumption in China, the top importer of crude, will fall from 2028, according to the "Oil 2025" report. Demand in the Middle East will also peak in 2027 and decline the following year. Saudi Arabia will post the "single largest decline in oil demand for any country" in absolute terms through 2030 as the kingdom replaces crude with gas and renewable energy to produce power, the IEA said. The report comes as oil prices have surged since Israel launched air strikes against Iran last week, prompting Tehran to fire missiles back at its arch foe. The price increases "are not driven by the fundamentals", IEA executive director Fatih Birol said in a news conference. "We have a lot of supply oil in the market. Demand is much weaker than the supply." "We don't expect high oil prices to be with us for a very long time," Birol said, adding that the IEA stood ready to act if there are any supply disruptions. While the conflict "focuses attention on immediate energy security risks", the IEA said oil supply growth will "far outpace" the increase in demand in coming years. World oil production capacity is forecast to rise by 5.1 million bpd – double the pace of demand – to 114.7 million bpd by 2030, the report found. "Combined, Saudi Arabia and the United States will contribute 40 percent to total global oil capacity growth in the forecast period," it said.--AFP
