Amid the gung-ho over the economic recovery and oil demand forecasts, Goldman Sachs conveyed its cautious optimism over the commodity. Early Friday, Bloomberg came out with the analytical piece that quotes Goldman Sachs suggesting an “anemic” pace of oil demand past 2025.
“The bank brought forward its forecast for peak oil demand in the transportation sector by one year to 2026, if not sooner, largely due to the accelerating adoption of electric vehicles,” said the report.
It’s also mentioned in the piece that BP Plc is the most aggressive forecaster followed by the International Energy Agency (IEA) whereas Wood Mackenzie Ltd. warned of the “severe” risks for oil companies not preparing for an accelerated energy transition.
“Avoiding peak oil this decade largely comes as economic growth continues in emerging markets, while for developed markets, Goldman sees overall oil demand never returning to 2019 levels. The decrease in road transport demand, which accounts for 43% of overall oil consumption, is also being exacerbated by a shift toward permanent work-from-home behaviors in the wake of the pandemic,” the report said.
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