Global oil demand to return to pre-pandemic levels next year, although COVID hotspots will make the recovery uneven: IEA

  • Date: 11-Jun-2021
  • Source: Business Insider
  • Sector:Oil & Gas
  • Country:Gulf
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Global oil demand to return to pre-pandemic levels next year, although COVID hotspots will make the recovery uneven: IEA

Global oil demand is set to return to pre-pandemic levels by the end of 2022, but renewed COVID outbreaks and low vaccination levels in developing countries will make the recovery uneven, the International Energy Agency said on Friday. The IEA issued its first forecast for 2022 in its monthly oil report, predicting that demand would build on 2021's growth of 5.4 million barrels per day and increase by an additional 3.1 million barrels per day in 2022, reaching 100.6 million barrels per day by the end of next year. Recovery will however be uneven as COVID-19 continues to affect non-OECD countries with slower vaccination rates and the pandemic caused shifts in consumer behaviour. "Continued teleworking in OECD countries [...], higher electric vehicle sales and increased car efficiencies for new models will weigh on growth." the IEA believes, adding that ongoing border closures will also keep impacting fuel orders. They had slowed down significantly during the pandemic and associated lockdowns that prevented international and domestic travel. Jet fuel and kerosene demand are therefore still expected to be 11% lower at the end of 2022 compared to before the pandemic. At the same time, LPG and ethane demand will rise around 5%