Blow for Putin and MBS as oil demand set to slow

Growth forecasts for global oil demand next year have been downgraded as the post-pandemic recovery stalls just as electric vehicle (EV) use surges.

The International Energy Agency (IEA) said on Friday that demand will rise by only one million barrels per day (bpd) in 2024, which is 150,000 bpd less than previously forecast.

This will be a blow to both Russian President Vladimir Putin, who is using oil and gas revenues to fund his war in Ukraine, and Saudi Arabia’s Crown Prince Mohammed bin Salman, whose oil profits are driving the country’s economic diversification.

The IEA said: “With the post-pandemic rebound running out of steam, and as lacklustre economic conditions, tighter efficiency standards, and new electric vehicles weigh on use, growth is forecast to slow to 1m bpd in 2024.”

The Paris-based energy watchdog has forecast that 14 million electric vehicles will be sold by the end of 2023, a 35pc surge compared to 2022.

By 2030, it expects EV use will be displacing five million barrels of oil per day.

But for now, world oil demand is still hitting record highs following China’s post-pandemic reopening and a rebound in global air travel.

In June, demand hit an all-time peak of 103m bpd. The IEA said August demand could surpass this level.

The IEA said global oil demand will jump by 2.2m bpd to hit 102.2m bpd in 2022, with China driving more than 70pc of this growth.

Read more: msn

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