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Demand for oil will surpass pre-pandemic levels by the end of next year as the global economy recovers, the International Energy Agency said on Friday, rejecting analysts’ predictions that the world’s oil usage has already peaked.


“Global oil demand is set to return to pre-pandemic levels by the end of 2022,” the IEA said in its monthly oil market report, predicting that demand will rise by 5.4 million barrels per day this year and an additional 3.1 million barrels next year to an average of 99.5 million barrels per day in 2022. 

Oil demand plunged by a record 8.6 million barrels per day in 2020 as coronavirus lockdowns and travel bans destroyed demand. 

Faced with this collapse, petroleum giant BP said in a September report that the world had reached “peak oil,” meaning that oil usage would never return to pre-pandemic levels. And in December, Bloomberg News declared, “Peak Oil Is Suddenly Upon Us.” 

But Paris-based IEA, which is an intergovernmental organization that includes the US, European Union and Japan, believes proponents of the peak oil theory spoke too soon. 

Oil demand plunged by a historic 8.6 million barrels per day in 2020 as coronavirus lockdowns and travel bans destroyed demand. Getty Images

In the coming years, global demand for plastics will boost sales of petrochemicals, while the recovery of the travel sector will increase jet fuel usage, the IEA said. 

However, the increasing popularity of remote work and the rise of electric and fuel-efficient vehicles will suppress some demand for gasoline, according to the organization. 

In addition, the lopsided global distribution of vaccines toward wealthy countries means that oil demand in poorer countries will recover more slowly, the IEA predicted. 

Meeting global oil demand is “unlikely to be a problem” due to increased production by countries including Saudi Arabia, the IEA said.Bloomberg via Getty Images

Despite these trends, the group insisted that demand should surpass pre-COVID levels by the end of 2022. 

“The recovery will be uneven not only amongst regions but across sectors and products,” said the IEA, which is led by Turkish energy economist Fatih Birol. 

The IEA said that meeting growing global oil demand is “unlikely to be a problem” due to increased production by OPEC+ countries like Saudi Arabia, as well as further output by the US, Canada, Brazil and Norway. 

The recovery of the travel sector will increase jet fuel usage, the IEA said.Los Angeles Times via Getty Imag The rise of remote work and the popularity of energy-efficient vehicles will suppress some demand for gasoline, however.Bloomberg via Getty Images

If sanctions on Iran were lifted, an additional 1.4 million barrels per day would hit the global oil market, the IEA said.

In May, US gas prices hit a seven-year high as the Colonial Pipeline hack shut down America’s largest pipeline. 

Filed under economy ,  gas prices ,  global economy ,  oil ,  saudi arabia ,  6/11/21

News Source: New York Post

Tags: search oil economy gas prices global economy oil saudi arabia return to pre pandemic levels remote work global oil demand pre covid levels global economy an additional popularity saudi arabia the rise demand that demand the rise

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Qatar to require fans at 2022 World Cup to be vaccinated

Qatar will require spectators at the 2022 World Cup to have received coronavirus vaccines to get into games, the government has announced.

Prime Minister Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani told Qatar newspaper editors that the Gulf nation is trying to secure a million vaccine doses to immunize fans wanting to watch the tournament.


"When the date of the FIFA World Cup Qatar 2022 comes, most countries of the world will have vaccinated and immunized their citizens," Sheikh Khaled was quoted as saying by state media on Sunday. "Due to the possibility that some countries will not be able to vaccinate all their citizens, Qatar will not allow fans to enter stadiums without receiving a full vaccination against the virus."

Qatar has recorded 585 deaths and 220,800 cases during the pandemic. The Middle East's first World Cup is due to start Nov. 21, 2022.


"We are currently negotiating with a company to provide one million vaccine doses against the coronavirus for the immunization of those coming to the FIFA World Cup Qatar," Sheikh Khaled said. "Our primary goal in vaccinating the unvaccinated is to protect the public health of citizens and residents."

FIFA and Qatar World Cup organizers had no immediate comment expanding on the prime minister’s remarks.

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