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Global demand for oil to stay for another decade
Hydrocarbons are looking at a bright future! According to Goldman Sachs currency strategists, global oil demand will remain high for the next ten years.
Experts at Goldman Sachs predict that global oil demand will continue to rise over the next decade, peaking in the mid-2030s. Analysts believe several factors will drive this steady growth in the medium term. Chief among them is the stable demand from developing countries and the tough challenges of decarbonizing air travel and petrochemical production. The shift to alternative energy sources in these sectors is unlikely anytime soon, according to Goldman Sachs. For developing nations, this is also a complex task they are unlikely to cope with in the next 10 years.
The growing global oil demand will be met by a surplus in supply. Next year, the market is expected to have an excess of 400,000 barrels per day, growing to 900,000 barrels per day by 2026. This surplus is driven by increased production in the US, Canada, Brazil, and other countries. As a result, Goldman Sachs forecasts the average price of Brent crude oil to be $76 per barrel in 2025 and $71 per barrel in 2026.
Meanwhile, the International Energy Agency (IEA) recently declared that the global fossil fuel economy began a terminal decline. According to preliminary predictions, global interest in oil will peak after 2030, influenced by factors such as China's rapid development of green and nuclear energy and its slowing economic growth. Notably, China is currently one of the world's largest consumers of oil and coal.
Published 03 December 2024
© InstaFintech Group
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© InstaFintech Group
