Surging demand from Asia driving the increase

  • Global demand for fossil fuels to reach new record in 2024
  • Surging demand from Asia driving the increase
  • Oil demand expected to rise 1.7%
  • High commodity prices to spur investment in the sector
  • Renewable energy consumption forecasted to rise 11% in 2024

Global demand for fossil fuels is projected to hit a new record in 2024, driven by surging demand from Asia, according to a report by the Economist Intelligence Unit (EIU). The report highlights that global energy consumption is expected to rise by 1.8% in 2024, with oil demand alone increasing by 1.7%. The EIU also predicts high commodity prices to stimulate investment in the fossil fuel sector. Additionally, the report forecasts a 2.2% increase in gas demand, primarily from Asia and the Middle East. However, Europe has diverted some of its energy consumption away from natural gas due to geopolitical tensions. On the other hand, renewable energy consumption is set to rise by 11% in 2024, with wind and solar energy leading the growth. Despite the positive outlook for renewable energy, the EIU cautions that challenges such as elevated mining costs and unresolved supply-chain issues may impact renewable-energy auctions and the installation of green hydrogen production.

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Factuality Level: 7
Justification: The article provides information from a report by the Economist Intelligence Unit, which indicates that global demand for fossil fuels is expected to reach new heights in 2024, driven by surging demand from Asia. It also mentions that oil prices are expected to remain high due to efforts from OPEC. The article includes some specific figures and quotes from the report. However, it does not provide any counterarguments or alternative perspectives, and it does not mention any potential limitations or criticisms of the report’s findings. Therefore, while the information presented is based on a reputable source, the article lacks a comprehensive analysis and may not provide a complete picture of the topic.

Noise Level: 7
Justification: The article provides some information on global demand for fossil fuels and renewable energy, but it lacks in-depth analysis and evidence to support its claims. It also includes some irrelevant information about the U.S. being the only major producer to make up the difference in oil supply. The article briefly mentions challenges for renewable energy auctions and green hydrogen production, but does not provide sufficient details or solutions.

Financial Relevance: Yes
Financial Markets Impacted: The report indicates that global demand for coal, oil, and gas is set to reach new heights in 2024, which suggests potential impacts on the energy sector and related companies.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the projected increase in global demand for fossil fuels, which has financial implications for the energy sector and related companies. However, there is no mention of any extreme events or their impacts.