Investment bank Goldman Sachs Group Inc. (NYSE:GS) has released a new report, stating that the global EV demand could record a surge that will offset demand for oil by late next year.
EVs To Offset 320,000 Barrels Of Oil Daily?
In a report released on Monday, the investment bank outlined that EV car sales in the market increased by 3.4 percentage points in May. EVs accounted for 26.1% of total sales in the global market.
The study outlined demand for oil in the global market could take a hit of around 130,000 barrels/day by December next year if there is no growth in EV sales.
However, under the “Persistent Acceleration” scenario, oil demand could be offset by 320,000 barrels/day during the same period if the growth follows the February to May path.
The note also said that two- and three-wheeler EVs, which accounted for a majority of sales in markets like India and Vietnam, could offset about “one-third to one-half” of the fuel that four-wheeler EVs can.
According to a report by the Energy Information Administration (EIA) published June 9, the agency expects global oil demand to decrease by an average of 1.1 million barrels/day in 2026, while it will rebound sometime next year by 2.5 million barrels/day in 2027 to 105.3 million barrels of oil every day.
EV Sales Increase
EV sales in the U.S. reached a record high in May, with preliminary numbers showing 85,000 units sold. The average EV transaction price was $54,532, a 4% YoY decline from May 2025. The growth comes despite President Donald Trump doing away with the $7,500 Federal EV Credit.
Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk, defending against the allegations that his businesses benefited from government subsidies, said that Tesla’s sales increased after the end of the Federal EV credit.
Meanwhile, investor Ross Gerber of Gerber Kawasaki said that the spike in gas prices sparked by the Iran war would lead to people choosing EVs over gas vehicles, adding that such a shift can benefit Tesla.
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