China will overtake the U.S. as the world’s biggest oil consumer within two decades, according to the International Energy Agency.
“A landmark is reached in the early 2030s, when China becomes the largest oil-consuming country, crossing paths with the United States,” the agency said in a summary of its World Energy Outlook, which forecasts long-term energy trends. The full findings of the report will be presented at a press conference in London today.
Growth in oil demand to 2040 will also be driven by India, Southeast Asia, the Middle East and sub-Saharan Africa, the IEA said. Consumption in developed economies will shrink, with oil use in the U.S. falling to the lowest level in decades, it said.
Brent crude fell to a four-year low yesterday and is trading in a bear market amid signs that global demand growth isn’t keeping pace with supply. Members of the Organization of Petroleum Exporting Countries including Saudi Arabia and Iraq are resisting calls to cut output. They have instead reduced export prices to the U.S., where they’re competing with the fastest rate of production in more than 30 years.
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