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Demand for oil to exceed pre-Covid levels by the end of 2022, says IEA

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Oil demand will exceed pre-coronavirus levels by the end of 2022, the International Energy Agency said Friday.

Consumption dropped from a record 8.6 m barrels per day last year while the coronavirus swept across the world. It is expected to pick up by 5.4mb / d this year as vaccines are fired and as countries open up again.

In 2022, the IEA predicts a further increase of 3.1mb / d, for an average of 99.5mb / d with an increase at the end of the year exceeding the demand level before the coronavirus crisis ‘commitment.

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

The slow distribution of vaccines, he said, could “endanger” any outbreak.

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The aviation sector will be the slowest to recover as governments maintain certain travel restrictions “until the pandemic is firmly under control,” the IEA added. Demand for petrol could take longer to recover as work practices from home continue and the increasing adoption of electric vehicles will offset increased mobility.

In turn, the agency reiterated that Opec and its allies need to “open the taps” to boost oil production and keep the world well supplied. The so-called Opec + group is expected to increase production by 2m b / d between May and July.

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