According to the IEA‘s August report, global oil demand will increase by 5.3 million barrels per day in 2021. At the same time, the agency assessed potential demand at 5.4 million barrels per day in July, according to TASS.
As a result, global oil demand may reach 96.2 million barrels per day in 2021. The IEA’s projection for demand growth in 2022 remains at 3.2 million barrels per day.
The reduction in demand recovery is largely owing to the fact that numerous Asian nations, who are major oil importers, have lately imposed additional limitations due to the spread of coronavirus, which might potentially impede movement in these regions. According to the IEA, the forecast for demand growth has fallen the greatest in the second half of 2021.
Although global demand climbed by 3.8 million barrels per day in July due to increasing activity in Europe and North America, analysts argue in the IEA report that it has already altered direction.
At the same time, the oil market, according to the IEA, is battling not so much for supply-demand balance as it is for survival in the face of the global energy transformation.