The Strategist

BP expects oil demand to return to pre-crisis levels in a year

09/29/2021 - 07:25

Oil consumption will return to pre-demand levels in the third quarter of 2022, said Eugene Leong, president of oil and gas company BP Singapore. In his view, Asia remains the driver of demand growth.

In an interview with Bloomberg, Mr. Leong said that the recovery in oil demand has already started and stocks of oil and most petroleum products had returned to normal levels by June. He believes demand will grow by an average of 3.8 million barrels per day in 2022.

The head of BP Singapore conceded that growth in global oil production will exceed consumption next year, resulting in a supply surplus of 700,000 barrels per day. "Global energy needs are changing rapidly and uncertainty about how and when the pandemic will end will certainly affect market dynamics," he said.

On September 28, the cost of a barrel of Brent oil exceeded the $80 level. Establishment of multi-year maximum comes at the background of crude deficit due to actively recovering demand and insufficiently fast recovery of production in the Gulf of Mexico. In winter months the deficit could grow by another third if gas consumers switch to oil.