BAKU, Azerbaijan, Dec. 28
By Khagan Isayev – Trend:
Wood Mackenzie international consulting company projects the demand for oil in Asia to continue to recover in 2022 after growing by almost seven percent in 2021, Trend reports citing the company.
“We currently expect oil demand to grow by about 5.5 percent as Asia leads the global recovery in commodity demand in 2022. On this basis, refining margins are expected to continue to recover, providing a much-needed pause for the region's refineries over the next 12 months,” the company said.
However, analysts predict that the double impact of the new omicron strain of the coronavirus and inflationary pressures could slow or even prevent the expected recovery in oil demand.
"If the consequences of the omicron turn out to be serious, then the new travel restrictions may be extended beyond the first quarter of 2022, which will jeopardize the prospects for improvement," the company said.
Wood Mackenzie analysts also said Asian refiners are currently facing increasing pressure from shareholders and governments to cut carbon emissions.
"If the threat of a refinery emissions tax becomes real in 2022, it could once again lead to the closure of factories in Asia," the company added.