China's shift to EVs poses threats to global oil markets

China is experiencing a significant shift towards electric vehicles (EVs), with EVs now accounting for 40% of new car sales in the country. This transition is expected to disrupt the global oil market, as the International Energy Agency (IEA) projects that by 2030, up to 6 million barrels per day of oil demand could be displaced. The IEA's World Energy Outlook 2024 indicates that EVs will represent 50% of global car sales by 2030, with 70% of new car sales in China being electric. Despite the rapid growth in clean energy sources like wind and solar, China's electricity demand is also rising, driven by industrial consumption and the increasing use of electric vehicles. This dual trend has led to a situation where emissions continue to rise, even as clean energy installations expand. The IEA warns that without significant action, global emissions will not decline quickly enough to meet climate goals. As oil demand in China potentially decreases, India is projected to increase its oil consumption by nearly 2 million barrels per day by 2035, providing a potential market for oil producers. This shift highlights the complex dynamics of global energy markets, where some regions may see increased demand even as others reduce their reliance on fossil fuels. The report emphasizes the urgent need for global efforts to reduce greenhouse gas emissions to avoid severe climate impacts, as current trends indicate a trajectory that could lead to a 2.4 degrees Celsius increase in global temperatures by the end of the century, far exceeding the targets set by the Paris Agreement.