Oil Demand to Hit Pre-Pandemic Levels in 2022, Says IEA. Unequal Recovery Possible Due to COVID Resurgence

The International Energy Agency forecasts global oil demand in 2022 to reach levels before the pandemic hit.

Source: Markets Insider

• The IEA expects global demand to grow 3.1 million barrels per day to reach 100.6 million bpd in 2022. Growth for 2021 is 5.4 million bpd.
• The IEA believes recovery will not be even as the pandemic continues to hit countries with slower vaccination rates.
• Fuel orders will be affected by continued remote working arrangements in OECD where sales for electric vehicles are higher and impact growth.
• Supply will grow faster in 2022 due to the expected recovery of the United States from two years of production declines.
• Demand for jet fuel and kerosene at the end-2022 will still be 11% lower than pre-pandemic levels.
• Demand for liquefied petroleum gas and ethane will climb 5% versus pre-pandemic levels while gasoline and diesel will rebound. 
• The OPEC+ partners will likely supply an additional 1.4 million bpd while non-OPEC countries will produce 1.6 million bpd.