The latest report from the International Energy Agency (IEA) predicts that global demand for oil will peak in 2029 and begin to decline in the following year.

IEA estimates that by 2030, crude oil supply capacity will reach nearly 114 million barrels per day, 8 million barrels higher than the demand predicted in its annual oil report.

Fatih Birol, IEA executive director, said that the forecast based on the latest data in this report shows that there will be a significant oversupply in this decade, indicating that oil companies may need to ensure their commercial strategies and plans are prepared for the upcoming changes.

IEA states that global demand for oil will peak at 105.6 million barrels per day in 2029 and then slightly decline in 2030 due to an increase in the use of electric cars, increased efficiency, and a gradual reduction in dependence on oil for power generation.

Due to slow consumption growth in developed countries, IEA has lowered its 2024 oil demand growth forecast by 100,000 barrels per day to 960,000 barrels per day, and it is expected to bring about one million barrels per day of growth next year due to economic slowdown and adoption of green energy.