Global oil demand to rise by almost 14mb/d by 2026

Oil&Gas Materials 28 September 2021 18:15 (UTC +04:00)
Global oil demand to rise by almost 14mb/d by 2026

BAKU, Azerbaijan, Sept.28

By Leman Zeynalova – Trend:

Global oil demand is expected to rise by around 14 million barrels per day between 2020 and 2026, Trend reports with reference to OPEC’s World Oil Outlook.

Oil demand is expected to recover to 96.6 million barrels per day (mb/d) in 2021 from 90.6 mb/d in 2020. Positive trend will continue with 99.9 mb/d in 2022, 101.6 mb/d in 2023, 102.7 mb/d in 2024, 103.6 mb/d in 2025 and 104.4 mb/d in 2026. The growth between 2020 and 2026 will stand at 13.8 mb/d.

OPEC notes that oil demand growth in 2021 has been slower than previously anticipated. “The assessment provided in the July 2021 edition of the OPEC MOMR projected a demand increase of 6 mb/d in 2021. This means that 2021 demand would still be around 3.4 mb/d lower than in 2019 and almost 1.1 mb/d lower than projected a year ago. It is important to note that a slower-than-expected recovery took place primarily in the OECD region, where the rebound in 2021 represented less than 50 percent of the decline in 2020. Needless to say, this lower demand base also has some implications for medium- and long-term demand levels.”

“In the road transport and aviation sectors, an assumed improvement in the pandemic situation should result in a higher propensity to travel and fly longer distances, hence supporting demand growth beyond the standard link to economic activity. A similar effect is also expected in the industrial sector, where production declined significantly in 2020 and many investment decisions were deferred. These investments are likely to be listed once again in the coming years, especially with support from government stimulus packages, which in turn supports oil demand growth in the sector. For these reasons, global oil demand is set to increase by 3.3 mb/d and 1.7 mb/d in 2022 and 2023, respectively.”


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