Rising EV sales could cut global oil demand by 320,000 barrels/day, pushing Brent crude to $55 by 2027.

Goldman Sachs forecasts that accelerating electric vehicle (EV) adoption, especially driven by China, could reduce global oil demand by up to 320,000 barrels per day by the end of 2027. EV sales now represent over a quarter of new car sales worldwide, with China contributing more than 60% of the recent growth. This shift is expected to slow oil demand growth and may cause Brent crude prices to fall to around $55 per barrel by late 2027. Higher fuel prices and geopolitical tensions near the Strait of Hormuz have likely accelerated the EV transition, particularly in China where gasoline demand is already weakening.