The International Energy Agency said on Friday that oil demand is expected to exceed pre-coronavirus levels by the end of 2022.
Consumption fell at a record rate of 8.6 million barrels per day last year as the coronavirus spread across the world. It is expected to rebound by 5.4 million barrels per day this year as vaccines are introduced and countries open up again.
In 2022, the IEA expects another increase of 3.1 million barrels per day, averaging 99.5 million barrels per day with an increase at the end of the year that will exceed the level of demand before the spread of the Corona virus crisis.
However, the Paris-based body warned in its monthly oil market report that “the recovery will be uneven not only between regions but across sectors and products.”
She said the slow distribution of the vaccine could “threaten” any recovery.
The IEA added that the aviation sector will be the slowest to recover as governments keep certain travel restrictions “until the epidemic is severely controlled”. Gasoline demand may take longer to recover as work-from-home practices continue and the adoption of electric vehicles increases to 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 OPEC+ group is expected to raise production by 2 million barrels per day between May and July.
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