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.