Slow Vaccinations in Developing World Set to Drag on Oil Demand

Slow Vaccinations in Developing World Set to Drag on Oil Demand

The world's appetite for crude oil will return to its pre-pandemic highs by the end of next year but low coronavirus vaccination rates in emerging economies are pushing the pandemic's end date further away, the International Energy Agency said Friday.

In its market report, the energy watchdog said that while it expects global oil demand in 2022's final quarter to hit 100.6 million barrels for the first time since late 2019, it was also slashing its forecast for resurgent demand in the second half of this year.

The IEA said the world will want approximately 300,000 barrels a day of crude less than previously thought in this year's final two quarters because of slow vaccination campaigns in countries such as Brazil, India and Malaysia.