Global oil demand likely to surpass pre-pandemic levels in 2022: IEA

Oil drilling rigs

Global oil demand is expected to exceed pre-pandemic levels this year as fears over the latest coronavirus wave subside, the International Energy Agency (IEA) said in its latest monthly report today, Jan. 19.

World oil demand was seen rising by 5.5 million barrels per day (bpd) in 2021 and by 3.3 million bpd in 2022, surpassing its pre-pandemic levels by 200,000 bpd to 99.7 million bpd.

During the fourth quarter of 2021, the IEA said global demand rose by 1.1 million bpd to 99 million bpd, an upward revision of 345,000 bpd compared to its previous report.

"If demand continues to grow strongly or supply disappoints, the low level of stocks and shrinking spare capacity means that oil markets could be in for another volatile year in 2022."

Meanwhile, the Paris-based agency cut its forecast for non-OPEC oil supply by 100,000 bpd to 66.5 million bpd.

The OECD industry stocks declined to seven-year lows in November, falling 6.1 million barrels month on month, it added.