IEA: Oil demand will not recover to 2019 levels before 2023

Shafaq News/ Global oil demand is forecast to increase 6% this year, or by 5.5 million barrels per day (bpd), to an average of 96.5 million bpd, having contracted by 8.7 million bpd in 2020, according to the International Energy Agency's (IEA) monthly oil report on Tuesday.

"stronger economy and vaccine deployment will support growth in the second half of 2021, reducing the oil demand gap from 4.8 million bpd in the first quarter of 2021 to 1.4 million bpd in the fourth quarter."

For 2021, global oil demand is forecast to grow by 5.5 million bpd to 96.5 million bpd, recovering around 60% of the volume lost in 2020, the agency said. Oil demand will return to 2019 levels by 2023, it added.

"The prospect of stronger demand and continued OPEC+ production restraint point to a sharp decline in inventories during the second half of the year. For now, however, there is more than enough oil in tanks and under the ground to keep global oil markets adequately supplied," the agency said.