JPT - The End Is Near for the Oil-Demand Surge

Oil consumption has recovered at a record pace but a report from IHS Markit said it is nearly at its limit. And don’t expect it to recover to the peak seen in February anytime soon.

The energy information and consulting firm said the rally, which pushed up demand by13 million B/D to 89 million B/D, is likely to continue to around 92–95 million B/D, well short of its 100 million B/D peak early this year.

“For demand to fully return, travel—especially air travel and commuting to work—needs to get back to normal. And that won’t happen until there is containment of the virus and effective vaccines,” said Jim Burkhard, vice president and head of oil markets for IHS Markit.

https://pubs.spe.org/en/jpt/jpt-article-detail/?art=7548