Global oil demand may reach a record high of 99.5 million barrels per day

Global oil demand may reach a record high of 99.5 million barrels per day

Going down right in the first session of the week, but the oil market has “reversed” impressively, although the last trading week ended early due to the Christmas holiday market.

The LyondellBasell-Houston refinery in Houston, Texas (USA). Photo: AFP/VNA

The sharp increase in the number of infections with the Omicron variant in Europe and the US has investors worried that new blockade measures may reduce fuel demand, thereby pushing oil prices lower in the session 20/12. .

However, the market recovered in three consecutive sessions, thanks to investors’ risk appetite. However, investors remain cautious as the Omicron variant may alter travel plans during the year-end holiday season and reduce the near-term fuel demand outlook.

Craig Erlam, senior analyst at financial services company OANDA (USA), said the restrictive measures may only be temporary as many countries are accelerating the rollout of the booster vaccination. strong. In addition, pharmaceutical company Moderna Inc (USA) has just announced that its booster vaccine appears to be effective in protecting against the Omicron variant in laboratory tests, further supporting the energy market. .

According to the latest report from the US Energy Information Administration (EIA), the country’s crude oil inventories fell by 4.7 million barrels last week (ending December 17), a sharper-than-expected decrease with crude oil inventories, although this result is partly due to year-end tax considerations that often keep companies from stockpiling as much crude.

Officials from the US Food and Drug Administration authorized the Covid-19 drug manufactured by Pfizer and Merck on the grounds that both drugs were effective against the Omicron variant. In addition, AstraZeneca says its three-dose course of its Covid-19 vaccine is effective against Omicron, according to data from an Oxford University laboratory study.

According to energy services firm Baker Hughes, the number of oil and gas rigs in the US this week rose to the highest level since April 2020, with 586 rigs. This signals that the mining output will increase in the coming months.

The last session of the week on December 24, when the US market was closed for Christmas, the London energy exchange (UK) was still open for a short time. Closing this session, the price of North Sea Brent oil for delivery ended a three-day upward streak to drop 71 cents to $76.14 per barrel. However, the price of this oil is still up about 3% for the whole week, as the market is still focused on the next steps of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, also known as the Organization of the Petroleum Exporting Countries (OPEC) and its allies. is OPEC+, as well as the effects of the Omicron variant on the market.

Electric vehicles are becoming more and more popular, big businesses are working to transform technology to fulfill their environmental goals, and people around the globe are taking action to stop climate change. However, a verified fact shows that the world oil consumption in 2022 may reach a record high. Global energy demand has rebounded strongly this year, as pandemic restrictions ease and is expected to increase further in 2022. The International Energy Agency (IEA) predicts global oil demand will increase by 3.3 million bpd next year, to 99.5 million bpd.

Similar to the previous record level recorded in 2019, before the outbreak of the pandemic. Even the Omicron variant is not expected to derail the recovery of oil demand.

The IEA, which tracks energy market trends for the world’s richest countries, said it expected continued strong growth in demand for road transport fuels and petrochemicals. The IEA has lowered its forecast for jet fuel demand due to restrictions on international travel as governments try to contain the spread of Omicron.