The global demand for crude oil is expected to reach pre-Covid-19 levels as early as the second half of next year, as a number of key economies lift pandemic-related restrictions and ongoing vaccination rollouts increase confidence among travellers.
According to the latest International Energy Agency’s (IEA) outlook, the global consumption of crude is forecast to hit 100 million barrels per day come the second half of 2022, as a number of developed nations continue to mitigate the Covid-19 pandemic. In fact, the IEA is expecting that demand could even exceed pre-virus levels at some point before the end of the year.
The latest forecast goes against the growing speculation that crude demand may have already peaked, especially as social changes related to climate change accelerate in wake of the Covid-19 pandemic. The IEA has previously called for crude consumption to peak sometime in 2030, but has refrained from forecasting a peak in demand.
In the meantime, crude prices have recovered significantly since the nadir of last spring. Prices have surpassed US$70 per barrel— the highest in over two years, as economic activity and travel picks up.
Information for this briefing was found via the IEA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.