Goldman Sachs says EV surge may cut oil demand by late 2027

Kitco Media
By Reuters
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Reuters
Goldman Sachs says EV surge may cut oil demand by late 2027 teaser image

June 22 (Reuters) - Goldman Sachs said accelerating electric vehicle adoption following a Hormuz-related oil supply shock could ​trim global oil demand by up ‌to 0.32 million barrels per day by late 2027.

Global EV car sales penetration increased 3.4 percentage points, ​the bank said in a note, to ​reach 26.1% last month — its second-highest level ⁠ever.

Here are the key details:

Goldman estimates a ​global oil demand hit of about 0.13 million ​bpd by December 2027 under its "Temporary Acceleration" scenario, which assumes regional EV penetration rates remain flat at their ​May 2026 levels.

The demand loss can reach ​around 0.32 million bpd over the same period under ‌the "Persistent ⁠Acceleration" scenario that assumes a regional EV penetration rates growth linear to February–May 2026 trends.

"Most notably, two-/three-wheeler EVs comprise a majority of total ​EV sales ​in India, ⁠Vietnam, and China and can displace a sizable one-third to one-half ​of the fuel that a passenger car ​EV ⁠can," Goldman Sachs wrote.

The bank said 12 of the world's 15 largest EV markets have ⁠seen ​rising penetration, with China leading ​gains as its rate increased by 11.4 percentage points.

Reporting by ​Sumit Saha in Bengaluru; Editing by Joyjeet Das

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