Oil demand may hit 100 million b/d in 2021 if economic recovery sustains
Covid-19 may have done permanent damage to oil consumption in the transport sector. Some analysts see global oil demand peaking later this decade, while others believe it may never return to the giddy heights of 100 million barrels per day (b/d). But strong growth in petrochemicals use could delay peak oil demand for a couple of decades.
An accelerated shift to cleaner energy and electric vehicles along with vehicle efficiency improvements had already started to gnaw away at oil demand well before the coronavirus hit.
What is striking is that those transportation sectors seen as more resistant to energy transition due to the challenges of them running on alternative fuels – airlines and shipping – have been hardest hit and will be the slowest to recover.
