Market Speaks: IEA says crude oil?s share of total global energy demand fell below 30% for the first time ever in 2024

International Energy Agency or IEA stated in its latest Global Energy Review that global energy demand grew at a faster-than-average pace in 2024 as the consumption of electricity rose around the world – with increased supply of renewables and natural gas covering the majority of additional energy needs. The latest edition of the IEA’s Global Energy Review is the first global assessment of 2024 trends across the energy sector.

The report finds that global energy demand rose by 2.2% last year – lower than GDP growth of 3.2% but considerably faster than the average annual demand increase of 1.3% between 2013 and 2023. Emerging and developing economies accounted for over 80% of the increase in global energy demand in 2024. This was despite slower growth in China, where energy consumption rose by less than 3%, half its 2023 rate and well below the country’s recent annual average.

After several years of declines, advanced economies saw a return to growth, with their energy demand increasing by almost 1% in aggregate. The acceleration in global energy demand growth in 2024 was led by the power sector, with global electricity consumption surging by nearly 1,100 terawatt-hours, or 4.3%. This was nearly double the annual average over the past decade.

IEA noted that crude oil demand grew more slowly, rising by 0.8% in 2024. Oil’s share of total energy demand fell below 30% for the first time ever, 50 years after it peaked at 46%. Sales of electric cars rose by over 25% last year, with electric models accounting for one in five cars sold globally. This contributed considerably to the decline in oil demand for road transport, which offset a significant proportion of the rise in oil consumption for aviation and petrochemicals.

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