After slumping to an eight-year low in 2020, global oil demand is expected to rebound by 5.5 million b/d in 2021, according to S&P Global Platts Analytics.
Despite fears over growing Covid-19 infections in parts of Asia and the risk of new variants thwarting progress on vaccinations, the recovery could bring oil demand close to pre covid-19 levels by year end. Market watchers are cautiously optimistic that India, the world’s number three oil consumer, will push back its COVID-19 crisis during the second half of the year.
In the West, a summer US gasoline demand boost is set to outstrip seasonal norms but air travel continues to lag the global recovery. By year-end, global jet demand may still be 1 million b/d below pre-COVID-19 levels.
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Source: spglobal.com
