Gasoline Demand Growth To Slow This Year

Analysts predict a significant deceleration in global petroleum demand growth for 2024, potentially halving compared to previous years.

The slowdown in gas demand is attributed to China nearing peak transport fuel demand and increased adoption of electric vehicles (EVs) in both China and the US.

Mohi Narayan reported for Reuters, citing a shift towards electric cars in China and the US, alongside a return to normal consumption patterns following the COVID-19 pandemic.

Consultancy Wood Mackenzie forecasts a growth of 340,000 barrels per day (bpd), totaling 26.5 million bpd for the year, a stark contrast to the 700,000 bpd growth observed in the previous year.

This slowdown is attributed to China nearing peak transport fuel demand and increased adoption of electric vehicles (EVs) in both China and the US. Woodmac analyst Sushant Gupta emphasized that Chinese demand growth is expected to be minimal due to higher EV uptake.

Meanwhile, Rystad Energy estimates global gasoline demand to reach approximately 26 million bpd in 2024, with an increase of about 300,000 bpd from the previous year.

This surge follows a consumption boom post-pandemic. China, once a key driver of gasoline demand, is anticipated to witness a significant portion of global EV sales this year, according to the International Energy Agency (IEA).