Oil demand to exceed pre-Covid levels by end of 2022, IEA says

Demand for oil is expected to exceed pre-coronavirus levels by the end of 2022, the International Energy Agency said on Friday.

Consumption fell to a record 8.6 million barrels per day last year as the coronavirus raged around the world. It is expected to rebound from 5.4 Mb / d this year as vaccines are rolled out and countries reopen.

In 2022, the IEA expects a further increase of 3.1 Mb / d, reaching an average of 99.5 Mb / d with an increase at the end of the year that will exceed the level of demand before that the coronavirus crisis does not set in.

However, the Paris-based organization warned in its monthly report on the oil market that “the recovery will be uneven not only between regions but between sectors and products”.

Slow vaccine delivery, he said, could “jeopardize” any rebound.

The aviation sector will be the slowest to recover as governments maintain some travel restrictions “until the pandemic is firmly under control,” the IEA added. Gasoline demand may take longer to recover as work-from-home practices continue and the growing adoption of electric vehicles offsets increased mobility.

In turn, the agency reiterated that Opec and its allies must “turn on the taps” to increase oil production and keep the world well supplied. The group says Opec + should increase its production by 2 million barrels per day between May and July.

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