Short-term oil demand is still growing strong and will continue to do so through the end of 2020; a trend taking place despite the market’s increasing focus on electric vehicles and the forecasted future plateau in oil demand, according to new analysis from IHS Markit.
Refined product demand growth has averaged 1,2-million barrels per day over the last five years, IHS Markit says in the new report from its oil markets and research team.
Current global total liquids oil demand growth is at similar levels to what was recorded during the 2003 to 2007 commodity super-cycle, referred to as the ‘golden age’ of refining. At present, current global total liquids oil demand is approximately 100-million barrels per day, the report says.
With economic growth robust and prices still under pressure, indications are that the current strong global refined product demand growth will continue through to end-2020, averaging 1,1-million barrels per day, per year, during the period.
IHS Markit expects global GDP to grow by 3,4% in both 2018 and 2019, respectively, due to convergence of robust economic activity in many markets around the world. “Although electric vehicles (EVs) are making headlines, they are not yet a market force to replace the internal combustion engines that power today’s automotive fleets, so oil demand is currently growing strong,” says Spencer Welch, director and head of global short-term refining research at IHS Markit, and the report’s co-author.
For the rest of this article: https://it-online.co.za/2018/04/20/electric-vehicles-not-denting-oil-demand/