There may be a significant oil glut in the world soon , This is the reason 2024.

According to a recent research from the International Energy Agency, the world may have an oil glut by the end of the decade due to increased production coupled with diminishing demand as people and businesses move to electric vehicles and renewable energy sources.

There may be a significant oil glut in the world soon. This is the reason.

According to the International Energy Agency, by 2030, the world’s total oil supply capacity is likely to increase to approximately 114 million barrels per day. This represents a “staggering” 8 million barrels per day over projected demand, the agency said on Wednesday.

According to the IEA, economies all around the world shut down during the COVID-19 lockdowns of 2020 in an effort to stop the deadly virus from spreading. This kind of spare capacity has not been observed before. It further stated that the additional capacity would have “significant consequences for oil markets,” encompassing not only the United States but also OPEC members like Saudi Arabia and Kuwait.

“This report’s projections, based on the latest data, show a major supply surplus emerging this decade, suggesting that oil companies may want to make sure their business strategies and plans are prepared for the changes taking place,” said Fatih Birol, IEA Executive Director. ,

Expectations that consumers in the United States and other industrialized nations would keep switching to electric vehicles are one of the factors driving the increase in oil supplies. By 2030, the IEA predicted that 40 million EVs would have been sold worldwide, with over half of all new cars being EVs.

Is there a chance that gas prices will drop?

An excess of oil reserves may result in a “lower price environment,” the IEA research speculates. Three estimates for oil prices in 2030 are provided by the analysis, however they range from a high of more than $90 per barrel to a low of less than $60 per barrel in just six years. At the moment, a barrel of oil is trading for roughly $82.

Nevertheless, a specialist advised against extrapolating too much from the report.

According to Patrick De Haan, head of petroleum analysis at GasBuddy, “it’s a long-range outlook, so it could be way off, or very close, but I’m a bit more concerned with the slowdown in EV adoption and the tremendous costs. for countries adopting EVs,” he wrote to CBS MoneyWatch via email.

The move to solar, wind, and other renewable energy sources has resulted in fewer plans to build new facilities, so cheaper gas prices may not materialize by 2030, he added. Some refineries have closed in the U.S. and Europe.

It’s unclear how this might affect petrol costs in the future, according to De Haan. “We’ll still need refineries for some time, and if they shut down as the transition occurs, that could lead gas prices higher in the long run.”

Due to decreased demand and cheaper oil costs, gas prices are currently declining nationwide, providing drivers with some short-term relief. According to AAA, the average price of regular unleaded gas in the United States was $3.44 per gallon on Monday, which is a decrease of almost 9 cents from one week ago and 14 cents from one year ago.

There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon.

There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon. There may be a significant oil glut in the world soon.

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The world could soon see a massive oil glut. Here’s why. (msn.com)

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