Energy security and economy still depend on oil
Despite record investment in renewable energy, global oil demand is expected to rise by 860,000 barrels per day in 2026, driven by demand from aviation, petrochemicals, and transportation. The world's reliance on oil remains a significant risk factor for the global economy, particularly for small countries with limited energy diversification.
The global economy remains heavily reliant on oil, despite significant investment in renewable energy. Oil demand is expected to rise by 860,000 barrels per day in 2026, driven by aviation, petrochemicals, and transportation. The International Energy Agency (IEA) forecasts a plateau in global oil demand around 105.5m barrels per day by 2030. Recent geopolitical tensions in the Strait of Hormuz have highlighted the risks associated with oil dependence, causing Brent prices to surge and inflationary pressures to rise. Countries like Cyprus, which rely heavily on imported fuels, are particularly vulnerable to oil price shocks. Until alternative energy solutions reach sufficient scale, oil will continue to shape macroeconomic developments.
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