Global oil demand may peak two years earlier

Rystad, Norway’s largest independent energy consulting firm, said on Wednesday that the rapid spread of electric vehicles around the world could lead to global oil demand peaking two years earlier than previously expected.

Rystad Energy said that global demand is currently expected to reach a peak of 101.6 million B / D in 2026, lower than the previous forecast of 102.2 million B / D in 2028 in November.

“In transportation and other oil dependent sectors, electrification is accelerating and will reduce oil consumption faster than we previously predicted,” rystad wroteBefore the outbreak of COVID-19 in early 2020, Rystad had expected oil demand to peaked in 2030, reaching 106 million barrels / day.

In all our scenarios, except for the amazing performance of electric vehicles, oil demand is expected to be phased out, replaced or recycled in a range of sectors, the company said.