Peak in oil demand ‘in sight’ before end of decade

Global oil demand could peak before the end of this decade as the energy crisis has accelerated the transition to cleaner technologies, the International Energy Agency said Wednesday.

The Paris-based agency, which advises developed nations, forecast in its Oil 2023 medium-term market report that annual demand growth would slow sharply over the next five years.

“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 as electric vehicles, energy efficiency and other technologies advance,” IEA Executive Director Fatih Birol said in a statement.

“Oil producers need to pay careful attention to the gathering pace of change and calibrate their investment decisions to ensure an orderly transition,” Birol said.

Energy prices soared last year after Russia, a major exporter of fossil fuels, invaded Ukraine and cut deliveries of natural gas to Europe.

Western powers imposed bans and price caps on Russian oil exports in efforts to drain a major source of cash for Moscow’s war effort.

Oil and gas prices have fallen in the past several months.