Oil prices eased on Thursday, dragged down by rising output, although strong demand and a drop in US fuel inventories provided the market with some support.
The demand for diesel stayed flat while that for petrol crawled up barely 2% in May when fuel prices claimed record highs in the country.
Global oil demand could peak in the early 2020s if countries pull together to hit climate goals, or keep growing until 2050 in a conflict-ridden world, according to Norwegian oil and gas firm Equinor.
India’s oil consumption surged 4.5% in April as industrial activity gathered pace in Asia’s third-largest economy and sales of trucks and buses soared.
Rising oil prices over the last two years have put the issue of demand destruction back on the agenda, as producers, traders and analysts try to estimate how consumers will respond.
The World Bank has projected a 20% jump in global prices of energy commodities – crude oil, gas and coal – this year, indicating a continued squeeze on fuel consumers in India and raising the prospect of cramping the government’s social spending ability as it heads back to people for another mandate.
As the auto industry is betting big for electric vehicles mainly to maintain cost, cut oil consumption, and reduce pollution.
Growing numbers of electric vehicles and changes in regulations on plastics will cause oil demand to peak by the late 2030s, BP has predicted.
Total oil consumption expanded at the fastest pace in 14 months to 16.9 million tons from 15.3 million a year ago, according to the oil ministry’s Petroleum Planning and Analysis Cell.
Global Oil Demand Is Estimated To Plateau Around In The Second Half Of The 2030s On Increasing EV Penetration In The Passenger Car Segment
Global population is estimated to increase from 7.3 billion in 2015 to 9.2 billion in 2040, stated OPEC in World Oil Outlook (WOO). Organization of the Petroleum Exporting Countries (OPEC) further stated, the additional 1.8 billion people will mainly come from Developing countries.