IEA: Rapid Shift to Electricity Could Disrupt Global Oil Market

SEATTLE (Oil Monster): According to the International Energy Agency's (IEA) World Energy Outlook Report, there is a possibility that the global oil market would be affected by the increasing adoption of electric vehicles, particularly in China. It should be mentioned that China has been largely responsible for the rise in the world's oil demand in recent years.

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Rough estimates indicate that 20% of new cars sold worldwide and over 40% of new cars sold in China are electric vehicles, which puts pressure on major producers of gas and oil. Future projections indicate that the adoption of EVs will pick up speed, with 50% of all sales expected to come from EVs by 2030. Consequently, there may be a 6 million barrel per day (bpd) decrease in the demand for oil.

Artificial Intelligence, data centers, cooling equipment, and light industries have all contributed to the increasing need for electricity. At the same time, a sharp drop in carbon emissions is anticipated by the end of this decade due to the quick transition to electric cars and the tremendous expansion of wind and solar power.

On the other hand, by 2035, it is anticipated that India's oil consumption would increase by around 2 million barrels per day. The major oil producing countries of the globe are reportedly anticipating the Indian markets as a way to offset the anticipated slowdown in growth in other regions.