IEA expects dramatic increase in oil demand next year

According to the statement made on Wednesday by the IEA (International Energy Agency), the global oil demand is forecasted to recover significantly due to China easing its coronavirus-related restrictions. The IEA has also noted that the expected growth will be slightly partially halted by the end of the current year as a result of economic slowdown.

The expectations for further sustainable price growth are still rather bullish, despite some economic challenges. Such attitudes are based on the upcoming return of China to working activities and a highly probable growth of fuel demand due to an increase in air travel volumes.

It’s suggested that the demand will increase to the level of 2.1 million barrels per day. The forecast relies on the expected recovery in China.

A notable amount of demand growth this year is linked to rich countries of the OECD (Organization for Economic Cooperation and Development), while it’s implied that next year the demand will be sustained by countries outside the organization, and most importantly by China, if the country starts to weaken its COVID-19 restrictions.

As it was stated by the IEA, three quarters of next year profits are expected to be attributed to countries, which aren’t presented in the OECD, if China meets the expectation and gets back to work.