It’s possible that China’s oil demand has peaked, the Internatioinal Energy Agency’s (IEA) head of oil Industry and markets Toril Bosoni said in a recent interview.
The Paris-based IEA analyses and monitors the world economy, including energy security and the transition to clean energy. Earlier this year the IEA predicted that world oil demand will stop growing this decade amid a shift away from fossil fuels toward electric vehicles and renewable energy. Its latest monthly report backsup that earlier prediction.
“It’s not just the economy and the slowdown in the construction sector,” Bosoni said. “It’s the transition to electric vehicles, high speed rail and gas in trucking that is undermining Chinese oil demand growth.”
Oil consumption in China — the powerhouse of world markets for the past two decades — has contracted for six straight months through September and will grow this year at just 10 per cent of the rate seen in 2023, the IEA said in its monthly report on Thursday. The global glut would be even bigger if OPEC+ decides to press on with plans to revive halted production when it gathers next month, according to the agency.
Sources:
Financial Post, Nov 14, 2024. https://financialpost.com/…/oil-gas/oil-market-glut-iea
The Electric Viking, Nov 23, 2024. https://youtu.be/IpeBraBhXVA?t=59
The IEA says China has hit peak oil – Oil markets face enormous glut
China Environment News 