The International Energy Agency said on Friday that by the end of 2022, oil demand is expected to exceed pre-coronavirus levels.
With the coronavirus raging around the world, consumption fell by a record 8.6 million barrels per day last year. With the launch of the vaccine and the country’s opening up again, it is expected to rebound by 5.4mb/d this year.
By 2022, the IEA is expected to further increase by 3.1mb/d, an average of 99.5mb/d, and the growth at the end of the year will exceed the level of demand before the outbreak of the coronavirus crisis.
Nonetheless, the Paris-based institution warned in its monthly oil market report that “the recovery is not only between regions, but also across sectors and products.”
It said that slow vaccine distribution could “endanger” any rebound.
The International Energy Agency added that as governments continue to impose certain travel restrictions, “until the pandemic is firmly controlled”, the aviation industry’s recovery will be the slowest. As work from home continues and the increasing popularity of electric vehicles offsets the increase in mobility, gasoline demand may take longer to recover.
In turn, the agency reiterated that OPEC and its allies need to “open the tap” to increase oil production and maintain adequate world supplies. The so-called OPEC+ group is expected to increase production by 2 million barrels per day between May and July.
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