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The International Energy Agency (IEA) predicts that global oil demand growth will slow down in the coming years, with a peak in demand expected this decade. The IEA's medium-term market report forecasts a 6% increase in global oil demand between 2022 and 2028, reaching 105.7 million barrels per day. However, annual demand growth is projected to shrink from 2.4 million barrels per day in 2023 to just 0.4 million barrels per day in 2028. The shift towards clean energy, including electric vehicles and energy efficiency, is driving this trend. The report highlights the need for oil producers to adapt their investment decisions for an orderly transition. The use of oil for transport fuels is expected to decline after 2026 due to the expansion of electric vehicles and improved fuel economy.

Oil demand to peak by 2028 as energy transition gathers pace

The International Energy Agency (IEA) predicts that global oil demand growth will slow down in the coming years, with a peak in demand expected this decade. The IEA’s medium-term market report forecasts a 6% increase in global oil demand between 2022 and 2028, reaching 105.7 million barrels per day. However, annual demand growth is projected to shrink from 2.4 million barrels per day in 2023 to just 0.4 million barrels per day in 2028. The shift towards clean energy, including electric vehicles and energy efficiency, is driving this trend. The report highlights the need for oil producers to adapt their investment decisions for an orderly transition. The use of oil for transport fuels is expected to decline after 2026 due to the expansion of electric vehicles and improved fuel economy.

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