India will lead global oil demand by 2030 due to economic growth; demand will remain high till the end of this decade

Global oil demand is expected to continue growing rapidly until the end of this decade. It will peak in 2027 in top importer China, supported by cheap petrol in the US and slow adoption of electric vehicles. The International Energy Agency (IEA) has not made any change in its forecast.

The IEA stated that demand will peak by 2029; however, it is estimated that demand in China will already peak due to the increasing number of electric vehicles. Global demand will peak in a few years. However, the producer group Organization of Petroleum Exporting Countries (OPEC) believes that consumption will continue to grow, but has not made any forecast of peak consumption.

According to the IEA's annual report, oil demand will reach a high of 105 million barrels per day (bpd) by 2029. Then there will be a slight decline in 2030. Global production capacity is estimated to increase by more than 5 million bpd to 114.7 million bpd by 2030. The conflict between Israel and Iran has highlighted the risk to Middle East supplies. This led to oil prices rising 5 percent to above $ 74 a barrel on Friday.