A peak in global oil demand is unlikely to occur before 2040 in a sub-$70 oil world, according to a research report from Bank of America Merrill Lynch (BoAML). Over the medium-term, low oil prices will influence the trajectory of demand growth in three key ways, the report entitled “Global Energy Weekly: Oil is back to the future” explained: 1 They will stimulate demand for vehicle transportation, eg, by boosting car proliferation in EMs; 2 They will slow efficiency gains, as consumers switch to larger and less fuel efficient vehicles; and 3 They will slow the rate of substitution out of oil into alternative (non-oil consuming) vehicles. True, demand has already peaked in developed markets due to efficiency gains. But EM demand is still growing strongly due to rising incomes and urbanization. Income inequality has been a major political topic around the world in the past decade. Now the […]