Emerging Markets Drive Global Oil Demand Resilience
UBS Group released a report stating that global oil demand has shown resilience beyond expectations. Although the energy transition and electric vehicle penetration had initially led to slower growth in oil consumption, the International Energy Agency (IEA) has continuously revised its previous demand forecasts upward.
The IEA's latest projections indicate that global oil demand will reach 105.7 million barrels per day in 2027, exceeding the previously forecast peak level for 2029. This significant increase is attributed to emerging markets, particularly those with rapid population growth and strong aspirations for economic development.
Non-OECD economies are expected to become the primary source of future growth in oil consumption. UBS Group believes that global oil demand will continue to grow in the coming years, driven primarily by emerging markets.
The bank anticipates that Brent crude oil prices will remain within a moderate range, reaching $85 per barrel by the end of 2026 and staying around $80 per barrel at the end of March, June, and September 2027.