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 has said.
"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.
The IEA expects growth in the demand for oil to slow significantly by 2028, with a peak in demand in sight before the end of the decade.
It predicts that the use of oil for transport will go into decline after 2026, due to increased take-up of electric vehicles, the growth of biofuels and improving fuel economy reduce consumption.
Overall consumption is expected to be supported by strong petrochemicals demand, though, the IEA adds.
High prices, and concerns about security of supply following Russia’s invasion of Ukraine, will speed the shift towards cleaner energy technologies, it said.