Global oil demand to surpass pre-pandemic levels this year

Oil&Gas Materials 28 January 2022 13:11 (UTC +04:00)

BAKU, Azerbaijan, Jan.28

By Leman Zeynalova – Trend:

Global oil demand has lost some momentum recently, but the fundamentals remain solid, Trend reports with reference to Oxford Institute of Energy Studies (OIES).

The OIES said in its latest report that global oil demand is still expected to grow by 5.6 mb/d in 2021 and further 3.3 mb/d in 2022.

“We expect global demand to return to its pre-COVID levels in H2 2022 and to surpass 2019 levels in Q4 2022. The recovery across the fuels and regions however remains highly uneven with the US, China, India, and the EU leading the recovery in oil demand. A synchronised recovery across the globe remains highly unlikely as the rolling out of the vaccines is not proceeding smoothly in many parts of the world,” the report says.

OIES analysts believe that depending on global oil demand outcomes and the pace and extend of the recovery of Iranian production, the market could switch into surplus in 2022 if OPEC+ stick to their deal.

“But balances could find support from either the supply or demand side of the market, or both, narrowing the surpluses and leading to a more balanced market,” reads the report.


Follow the author on Twitter: @Lyaman_Zeyn