(IEA) International Energy Agency expects global demand for oil to hit pre-pandemic levels towards the end of next year. IEA expects sustained Covid devastation and low inoculations in several parts of the world to challenge even recovery.
IEA expects oil demand to build on growth of 5.4 million barrels a day this year, and rise by further 3.1 million bpd in 2022.
IEA projects that demand will hit 100.6 million bpd by the end of 2022.
The energy body expects growth in teleworking, higher uptake of electric vehicles, and increased efficiencies of cars to weigh down on oil demand.
At the end of 2022, IEA expects kerosine and jet fuel demand to be down 11% compared to pre-pandemic levels.
LPG and ethane will see a 5% rebound by the end of 2022 from the pre-pandemic demand, as diesel and gasoline orders match previous levels.
Although IEA left 2021 forecast unchanged, it lowered demand expectations to 50,000 bpd, while setting annual growth to about 96.4 million bpd due to uneven recovery.
Outside the OPEC+, US is expected to account for most increases in oil demand.
Non-OPEC nations are expected to increase supply by about 1.6 million bpd next year, as OPEC+ fill additional 1.4 million bpd to meet demand.
IEA projects that OPEC+ could revise its current supply policies to offset demand and supply disparities in the second half of this year.
The lifting of Iran sanctions is also likely to make its crude flood the market in 2022.
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