Saudi Arabia increased oil output to 700,000 barrels a day in June. The International Energy Agency (IEA) forecasts a dramatic slowdown in oil demand due to China’s electric car revolution. OPEC plans to pump an extra 2.1 million barrels a day this year, reaching a total of 105 million barrels a day.

The market is at a turning point as peak oil demand looms. OPEC has been limiting oil supply to support prices, but now Saudi Arabia is leading a push to increase output to regain lost market share. The Saudis raised output by 700,000 barrels a day in June to 9.8 million barrels a day.

Despite OPEC’s forecast of a 1.3 million barrel a day demand increase this year, analysts predict growth will be half that. Macquarie Group warns of “cartoonishly large” surpluses due to slowing demand and rising output. Brent crude oil price rose above $69 a barrel on Friday.

China’s electric car revolution is driving a decline in oil demand. EVs made up half of Chinese car sales last year, expected to reach 60% this year. One in 10 cars in China are electric, with 11 million sold last year, surpassing global sales two years earlier. Chinese truck fleet is shifting to liquefied natural gas. Macquarie predicts China’s oil demand to grow by only 54,000 barrels a day this year, the slowest in almost a decade.

Read more at Yahoo Finance: China’s electric car revolution hammers demand for oil