Oil demand on track for record 2021 rebound, despite air-travel slump
The International Energy Agency says oil demand could bounce back next year, but restrictions on air travel will continue lower appetite for jet fuel.
The collapse of air travel during coronavirus weighs heavily on recovering oil demand, despite the fact 2021 could witness the biggest annual rebound in history, said the International Energy Agency (IEA).
In its latest oil market update, the Paris-based watchdog said worldwide demand will fall by 8.1 million barrels per day (bpd) this year – a slight positive adjustment from last month’s forecast of an 8.6 million bpd decline, prompted largely by China’s quick resurgence after lockdown.
Global demand has been decimated in the months since the pandemic began to spread, as containment measures put the brakes on travel and industrial activity.
A recovery of 5.7 million bpd is expected in 2021 – which would be the biggest annual growth in history beating 1973’s record – but even this will leave a shortfall of 2.4 million bpd to 2019’s all-time peak of 100.8 million bpd.
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