Goldman Sachs Predicted Oil Demand Growth Until 2034

SEATTLE (Oil Monster): Goldman Sachs lifted its earlier forecasts for global oil demand for 2030. Earlier this month, the International Energy Agency (IEA) too had cut its global oil demand forecasts.

The bank now expects the oil consumption to reach peak by 2034, aided by potential slowdown in electric vehicle (EV) adoption. It must be noted that EV sales has been witnessing decline in recent months, following dramatic rise for the past several years.

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In its recently released research note, the bank raised its crude oil demand forecast for 2030 to 10.85 crore barrels per day (bpd), higher from the previous forecast of 10.6 crore bpd. Furthermore, it expects the demand to hit a peak at 11 crore bpd in 2034. This will be followed by a plateau until the end of 2040. Goldman Sachs predicts a moderate compounded annual growth rate (CAGR) demand decline of 0.3% till 2040.

The majority of the forecast global oil demand growth till 2040 will be driven by emerging markets in the Asian region, with China and India likely to emerge as the key demand growth drivers.

The extended period of projected global oil demand growth is likely to boost the incomes of producers such as members belonging to the Organization of the Petroleum Exporting Countries and allies, collectively referred to as OPEC+ countries.