New projections indicate a continuous rise in oil demand over the next 25 years, with the global energy market about to enter a more precarious phase. 

Despite efficiency improvements and growing renewable power, the International Energy Agency’s November Oil Market Report shows that consumption is holding stronger than anticipated, with demand growth leveling off until next year. 

This pattern contrasts with previous forecasts that predicted more pronounced slowdowns in the consumption of industrial fuel and transportation. 

According to Reuters, new data indicates that while developing countries grow and petrochemical use stays structurally stable, global oil and gas demand may continue to rise until 2050. These forecasts demonstrate that despite industrialized countries’ efforts to decarbonize, emerging areas continue to underpin baseline demand. 

Additionally, large financial institutions are adjusting their models. Based on revised supply restrictions and slower-than-expected changes in heavy industries, Goldman Sachs now projects that global oil demand will continue to rise until 2040. 

Looking ahead to nearer term effects, inventory balances and possible supply pressure are the main short-term market consequences. 

The International Energy Agency observes that market conditions may be tight until the beginning of next year due to stable demand and uneven supply increases across producers. 

As the industry adapts to longer-lasting structural demand, analysts anticipate that more delays or interruptions in project timetables might lead to higher pricing volatility.