• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 8 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 7 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Goldman Betting on Cryptocurrencies
  • 8 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

World’s Top Oil Consumers Exceed Pre-Pandemic Demand Levels

Some of the world’s biggest oil consumers, led by China, have already exceeded pre-pandemic consumption levels, Bloomberg reports, citing consultancy SIA Energy.

“The worst for Asian fuel demand is over and we see a soft recovery of oil demand in the coming months,” SIA Energy analyst Sengyik Tee said, noting that he expected a 13-percent jump in Chinese oil consumption in the fourth quarter of the year—and not from a year ago but from 2019, before the pandemic started.

U.S. demand for oil is also on a solid rebound thanks to mass vaccinations during the summer. Earlier this month, demand hit the highest since the start of the year despite rekindled concern as Covid-19 case numbers climb higher.

Yet, the demand forecast is not the same for all fuels that drive overall oil demand higher. According to SIA Energy, for instance, China’s 13-percent oil demand growth in the fourth quarter will be driven by a 20-percent surge in gasoline demand. On the other hand, jet fuel demand will only inch up by 4 percent in the period.

Demand for oil in India is also on the mend, and strongly, as people opt for personal transportation in the wake of the latest lockdowns. This trend is likely to drive a surge in gasoline demand this fiscal year, which will, in turn, lead to a substantial increase in imports as India relies on foreign oil for the bulk of its needs.

The strong recovery of oil demand across the world’s three largest consumers has driven oil prices around 40 percent higher since the start of the year, according to Bloomberg. Downside risk remains clear and present because of the latest wave of Covid-19 infections, especially in densely populated countries such as India and Indonesia, a Wood Mac analyst told Bloomberg.

On the other hand, the fact that in parts of the world, demand for fuels already exceeds pre-pandemic levels suggests that the appetite for oil remains healthy despite the downside risk.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on September 09 2021 said:
    Global oil demand is already back to pre-pandemic levels and is expected to average 99-100 million barrels a day (mbd) in 2021 underpinned by a global economy growing at 6.3% this year or more than double its growth rate in 2019 and the fact that oil demand in the world’s three largest crude consumers, namely the US, China and India, has already exceeded pre-pandemic levels.

    And while concerns about a resurgence of COVID linger, the fundamentals of the global oil market are robust enough to overwhelm a new resurgence.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News