Global Oil Demand Will Return To Pre-Pandemic Level In Two Years

The International Energy Agency said in an annual report that global oil markets and the world economy are recovering from the massive collapse in demand caused by the coronavirus pandemic

Global oil demand will return to pre-pandemic levels in two years and reach record heights by 2026 unless governments take swift action to meet climate goals, the International Energy Agency said on Wednesday.

Oil markets and the world economy are recovering from the massive collapse in demand caused by the coronavirus pandemic, the IEA said in an annual report.

“The Covid-19 crisis caused a historic decline in global oil demand, but not necessarily a lasting one,” IEA executive director Fatih Birol said in a statement.

As people get vaccinated and restrictions are lifted, demand will return to its 2019 level by 2023, according to the report.

The IEA’s five-year projections estimates global demand will rise each year to reach 104 million barrels a day (mb/d) by 2026, a gain of four percent from the level in 2019.

The outlook for demand, however, has shited lower as the pandemic has forced changes in behaviour, with people working from home and travelling less, the report said.

More governments are also focusing on a potential “sustainable recovery” to move quickly towards a low-carbon future.

This raises the prospect of reaching a peak in oil demand sooner than expected “if governments follow through with strong policies to hasten the shit to clean energy,” according to the report.