Global oil demand will exceed pre-pandemic levels this year thanks to growing Covid-19 immunization rates and as recent virus waves haven’t proved severe enough to warrant a return to strict lockdown measures, the International Energy Agency said Wednesday.
Factoring in the IEA’s more optimistic forecasts are signs that recent coronavirus variants have been faster spreading but less fatal, helping boost global economic resilience to the virus, and allowing states to continue on a path of gradually winding down lockdown restrictions. “At the current speed of transmission, a large part of the population will likely have gained immunity by infection or vaccination by the end of the first quarter,” the group said. “As a result, restrictions to mobility could be minimal in the second half of the year.”
A global energy crunch that has seen natural-gas prices soar was another factor supporting the IEA’s forecasts for oil demand. Rocketing prices for natural gas were prompting greater demand for cheaper oil as an energy source, a trend which added 100,000 barrels a day of additional oil demand last month, the IEA said.
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