Oil demand growth jumps by 32.4% over 24 years.. Correlation strength with global economic growth is 0.89

Oil demand increased significantly between 2000 and 2023, rising by about 32.4% to reach 102.2 million barrels per day. Through statistical tests and the strength of the correlation between global economic growth and oil demand growth, the result is considered high at 0.89.

On a historical basis, oil demand in 2000 was about 77.2 million barrels per day. In 2005, oil demand reached high levels of 84.7 million barrels per day, indicating an increase of about 10% compared to 2000. During that period, global economic growth averaged about 3.4%.

As this economic momentum continued, oil demand rose to 88.7 million barrels per day by the end of 2010, an increase of about 5% compared to 2005, while global economic growth during that period was about 3%. Oil demand continued to increase significantly, rising in 2015 to about 95.3 million barrels per day, recording a growth rate of about 7% compared to 2010. Meanwhile, the average growth in the global economy was about 3.3%. This upward trend continued until the end of 2023, when oil demand reached about 102.2 million barrels per day, achieving a growth of 6% compared to 2016. However, the average growth of the global economy declined to 2.6%, which is a decrease from its average growth in previous periods. This decrease in average growth is attributed to the repercussions of the Covid-19 crisis, which led to a contraction of the global economy by about -2.9%. By analyzing historical data related to the growth of global demand for oil, it becomes clear that demand has decreased only twice in the past 24 years, in 2009 and 2023. The reason for these two declines is due to two crises that occurred in the global economy; which affected the decline in demand for oil: In 2009, the global financial crisis was the main focus, while in 2020, it was due to Covid-19 and the subsequent travel restrictions. Demand for oil from Asia is one of the most important variables affecting demand growth, and China is one of the most important buyers of oil globally, and Saudi Arabia is one of the most important oil-producing countries in the world with a production capacity of more than 12 million barrels per day, and the Kingdom has maintained the stability of global supplies during the past period, which enabled it to be one of the most important reliable sources of energy in the world.