Oil demand to slow sharply by 2028, putting peak in sight - IEA
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Global oil demand growth is expected to slow "almost to a halt" within five years, the International Energy Agency said in a report Wednesday, as higher prices and supply concerns will likely speed up the shift to clean energy sources and electric vehicles.
Demand will rise 6% between 2022 and 2028 to reach 105.7M barrels per day on robust demand from the petrochemical and aviation sectors, the IEA said in its medium-term oil market report. But annual demand growth is expected to shrink from 2.4 mb/d this year to just 0.4 mb/d in 2028.
Notably, the use of gasoline for vehicles is set to decline after 2026, given increased adoption of EVs and biofuels.
"The shift to a clean energy economy is picking up pace, with a peak in global oil demand in sight before the end of this decade," IEA Executive Director Fatih Birol said. 
IEA expects growth in China demand, which has seen a muted recovery after lifting COVID-19 restrictions, to slow markedly starting next year.
In a separate report, IEA said global oil demand will grow by 2.4 mb/d in 2023 to 102.3 mb/d, outpacing last year's 2.3 mb/d increase. China is expected to account for 60% of the gains.
Front-month Nymex crude (CL1:COM) rose 1% early on Wednesday, while August Brent crude (CO1:COM) was up 0.9%.
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EV stocks rose before the bell: Nikola (NKLA) +14.9%, Li Auto +4.3%, XPeng (XPEV) +3%, Nio (NIO) +2.9%, Tesla (TSLA) +1.9%.
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