Global Oil Demand Will Return To Pre-Epidemic

Global oil demand will return to pre-epidemic. The International Energy Agency (IEA) has announced that daily demand will increase until the end of 2022.

The IEA's oil market report for June indicated that global oil demand will reach 100.6 million barrels per day by the end of 2022, as advanced economies address the Covid-19 outbreak. It is estimated that 1.3 million barrels of the expected increase for the next year will come from Organization for Economic Cooperation and Development (OECD) countries, and 1.8 million barrels will come from non-OECD countries. In the aforementioned period, with the reopening of flights, the biggest increase in demand will be jet fuel and kerosene with 1.5 million barrels per day, followed by 660 thousand barrels of gasoline and 520 thousand barrels of diesel per day. Oil prices recorded a two-year high, exceeding $70 per barrel as global epidemic-driven restrictions were eased and economic activity gained momentum. Although the indicators in the latest report of the agency move a little higher, it is stated that the next move of the market depends on the decision of Riyadh and Moscow. The agency, which advises many developed countries, said: "OPEC+ needs to open the taps to ensure adequate supply of world oil markets." IEA President Fatih Birol warned that there could be more price increases if additional supply is not provided, while Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said that they would wait for consumption to become tangible before responding.