Published on 29 May 2024 on Zacks via Yahoo Finance

Goldman Sachs Projects Oil Demand Growth Till 2034

Goldman Sachs has raised its forecast for global oil demand, predicting robust growth until 2034. The investment bank now anticipates crude usage to peak at around 110 million barrels per day (bpd) by that year, largely due to slowing momentum in electric vehicle (EV) sales. This upward revision from the previously expected 106 million bpd by 2030 to 108.5 million bpd underscores the anticipated sustained consumption of oil products in the coming decade.

Drivers of Demand Growth

Goldman Sachs analysts attribute the prolonged oil demand growth primarily to economic expansion and industrial activities in emerging markets, particularly in Asia. China and India are projected to be the main drivers of this demand surge, echoing the consensus among other forecasters. Additionally, the bank points to a slower-than-expected transition to electric vehicles, citing rising concerns over EV capital costs, uncertain government policies, and a lack of charging infrastructure.