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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
Alternative driving fuel and EVs are about to tip the road fuels market past the point of return, BNEF said.
- BNEF estimates that road fuel demand will peak in 2027, around 2.6m b/d – or 5.3% - above 2023 levels.
- Demand will then fall to 4.5m b/d by 2035 before accelerating the decline to over half by 2050 compared to 2023 levels, BNEF added.
- Demand for zero-tailpipe emission vehicles - like EVs - will cut oil demand by 2m b/d by 2024, 4.6m b/d by 2028 and then triple by 2030.
- Biodiesel already accounted for 66% of diesel sales in California in 2023.
- Road fuels constitute 45% of total daily oil products consumption. Passenger vehicles are 99% of gasoline use and 66% of diesel use.
- Refineries operate predominantly to produce either diesel or gasoline. Weakening profitability for producing either of these fuels could call the viability of some refineries into question.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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