Birol: Global demand for oil will peak by 2029

The International Energy Agency reported on Wednesday that global oil demand will peak by 2029, then begin to contract from the following year, while supply is expected to significantly exceed demand by the end of the decade.

According to CNBC, the Paris-based agency expects, according to its annual oil report, that the supply will reach about 114 million barrels per day by 2030, an increase of eight million barrels per day over the expected demand.

“The forecasts in this report, which are based on the latest available data, show a large surplus in oil supplies during the current decade, which indicates that oil companies must ensure that their strategies and business plans keep pace with the ongoing changes,” said Fatih Birol, the agency’s executive director.

Read also: The International Energy Agency reduces its forecast for oil demand growth in 2024

The agency stated that oil demand growth will reach its peak and stabilize at 105.6 million barrels per day by 2029, and then will begin to decline slightly in 2030 due to the increasing use of electric cars, improved efficiency, and the trend towards generating energy away from fossil fuel sources.

It reduced its expectations for oil demand growth in 2024 by 100,000 barrels per day to 960,000 barrels per day, indicating a slowdown in consumption in developed countries, while it expects that stagnant economic growth and the shift towards green energy will lead to demand growth by one million barrels per day in 2025.