Global oil demand to recover to pre-pandemic levels, says IEA

Global oil demand to recover to pre-pandemic levels, says IEA

Global oil demand will recover to pre-pandemic levels late next year, the International Energy Agency (IEA) predicted, urging Opec and its allies to keep markets balanced by tapping their plentiful spare production capacity. World consumption will once again reach 100 million barrels a day in the second half of 2022 as developed economies bring the virus under control, the agency said, in its first detailed outlook for the year ahead. At some point before the end of the year, demand will surpass pre-Covid levels, it said. The forecast counters speculation that oil use “” and the resulting planet-warming emissions “” may have already peaked as a result of social changes in the wake of the pandemic. The IEA itself sees consumption reaching a plateau in the 2030s, but hasn't predicted a peak in demand. Oil prices have rebounded to a two-year high above $70 a barrel as motorists take to the roads and economic activity picks up with the easing of lockdowns. IEA Executive Director Fatih Birol has warned of a further price surge if extra supplies aren't forthcoming. However, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman has said he'll wait until consumption is tangible before responding. Non-Opec+ supply