Oil producers and traders expected global fuel demand to return to pre-Covid-19 levels early next year on Monday as the economy recovers from the aftermath of the pandemic, but the overcapacity refining will likely put pressure on those expectations.
Industry leaders have said that despite the continued increase in cases of the disease in many markets, which influenced the recovery in demand for certain refining products such as jet fuel, the trend in gasoline and diesel consumption indicated greater growth.
These statements were made at Platts Petroleum’s 2021 Asia-Pacific conference, which is to be held quest’year in hybrid form, with both real and virtual participants.
“We have seen refining margins recover as demand picks up,” said Eugene Leung, president of BP Singapore and CEO of BP’s commercial and shipping arm. in Asia, Pacific and the Middle East.
“Most likely, excess (refining) capacity will reduce in to some extent those margins, “he said in a pre-recorded speech at the conference.
The head of Hess Corp., an American oil and gas producer, said the company expects global demand to return to pre-pandemic levels, which were 100 million barrels per day, by the end of questyear or early 2022.
The IEA also predicted a strong recovery from the fourth quarter, citing “strong pent-up demand and continued progress in vaccination campaigns” to prevent COVID-19.
And expected global demand media of oil in 2021 reached 96.1 million barrels per day and 99.4 million barrels per day in 2022, compared to 90.0 million barrels per day recorded in 2020. OPEC forecast that demand media in the fourth quarter of questyear to questyear would reach 99.70 million barrels per day.
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