After three consecutive months of declines due to the Delta variant, global oil demand is set to rebound with a 1.6-million-bpd jump in October and continue rising through the end of the year, the International Energy Agency (IEA) said on Tuesday.
In this month’s report, the agency revised down its global oil demand forecast for August and September by nearly 600,000 bpd as China and a number of other South East Asian countries enforce more mobility restrictions.
In its closely watched Oil Market Report, the agency slightly revised down its full-year 2021 demand growth projection, but noted that pent-up demand and vaccine programs are expected to give rise to “a robust rebound” in global oil demand from the fourth quarter of this year.
The IEA now sees oil demand growing worldwide by 5.2 million bpd in 2021, down by 110,000 bpd compared to the forecast in last month’s assessment.
Next year, oil demand worldwide is now expected to jump by around 4.2 million bpd compared to 2021, an upward revision of 900,000 bpd from last month’s assessment, OPEC said in its closely watched Monthly Oil Market Report (MOMR) on Monday.