The Globe and Mail reports in its Thursday, Jan. 19, edition that world oil demand is forecast to hit a record high this year against a backdrop of constrained supply and a new warning from the United Nations Secretary-General that hope for staving off the worst effects of climate change is dimming.
The Globe's Jeffrey Jones writes that crude consumption will climb by nearly 2 per cent to an unprecedented 101.7 million barrels a day, the International Energy Agency (IEA) said in its January oil market report.
The IEA said demand would have been even higher, if not for the global improvements in energy efficiency and booming sales of electric vehicles. Those two factors have reduced the forecast demand figure by as much as 900,000 barrels a day and will help contain the market impact of limited oil supply gains, it said. Raymond James's Jeremy McCrea
notes that "oil demand is continuing at the pace we saw prior to the pandemic."
The forecast for more fossil fuel consumption comes amid growing alarm over climate change as severe weather becomes more frequent and damaging.
UN Secretary-General Antonio Guterres pointed out that greenhouse gas emissions are at record levels and growing.
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