Tuesday, September 16, 2025

IHS Markit: Global Oil Demand Not Expected to Recover Until 2022

Despite optimistic vaccine rollouts that are beginning to unfold across many parts of the world, several key commodities will still remain subdued for the foreseeable future.

According to IHS Markit vice chairman Daniel Yergin, the global demand for oil will likely not reach its pre-pandemic levels until the end of 2021 or even early 2022, despite positive vaccine news developing across developed countries. In an interview with Al Arabiya English, the energy expert’s expectations coincide with previous forecasts released by the International Energy Agency (IEA) and OPEC, both of which are not anticipating oil demand to rebound by next year.

In its monthly Oil Market Report released earlier in December, the IEA expects that the continuation of reduced jet fuel demand will ultimately contribute to approximately 80% of the 3.1 million-bpd oil demand gap in 2021. Likewise, OPEC also downgraded its December oil demand forecast for 2021, and is now anticipating that oil demand will only reach 95.89 million bpd, a decrease of 410,000 bpd from November’s projection.

Source: IEA

However, despite the disruptions in oil demand come next year, Yergin does not foresee it having a substantial impact on peak oil demand, which is expected to hit come 2030. The Pulitzer-Prize winning author also touched base on the state of the US shale patch, and its likelihood of returning to pre-pandemic growth. “Let me give you a very simple answer, the answer is no,” he told Al Arabiya English, with regards to whether or not US oil production has the potential to return to its 1.5-million-bpd yearly growth.

IHS Markit previously forecast that US shale production will remain relatively unchanged at approximately 11 million bpd until at least the end of 2021, before a moderate increase enters the horizon. However, according to Yergin, “that 1.5 million barrels per day, that two million barrels per day that was so disruptive for the oil market, that’s history.”


Information for this briefing was found via Al Arabiya English. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

IEA Revises Oil Demand Outlook Amid Worsening Spread of Delta Variant

What appeared to be a strong recovery in the demand for crude oil suddenly reversed...

Friday, August 13, 2021, 10:34:00 AM

US Shale Oil Production Reduced by Record Drop Amid Global Oversupply

The Energy Information Association (EIA) recently issued a crude oil production forecast, citing a forthcoming...

Wednesday, April 15, 2020, 08:15:00 AM

Coronavirus Erases Decades of Demand Growth for Crude Oil

Despite the agreement between OPEC and affiliates to cut oil production to record levels, oil...

Friday, April 17, 2020, 08:14:00 AM

US Oil Jobs in Peril: Many Will Never be Recouped Even in the Post-Pandemic World

As the demand for crude oil is slated to remain subdued for the foreseeable future...

Sunday, October 18, 2020, 03:44:00 PM

US Oil Production Anticipated to Fall by 0.99 Million BPD in August in Light of Grim Economic Outlook

Back in July, the Energy Information Administration (EIA) had anticipated that crude oil production in...

Thursday, August 13, 2020, 06:30:00 PM