Electric vehicles are having a measurable effect on global crude demand, according to new research by Bloomberg NEF. This is potentially bad news for fuel refiners and engine oil blenders.
In 2021, global passenger EV sales grew by 103% to nearly 6.6 million units, estimates Bloomberg. China and the European Union continue to lead the global market for EV registrations, clocking up 85% of the total combined that year. In third place is the United States, accounting for 10%. Meanwhile, sales grew the fastest in India, up 209% in 2021 compared with 2020.
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EVs displace 1.5 million barrels per day of crude demand, a volume that will continue to grow as zero-emissions vehicles gain evermore popularity. Most of the displacement was from two- and three-wheelers mostly in Asia, followed by buses. Passenger EVs only accounted for 13% of the 1.5 million b/d.