Global demand for oil has recovered above the key level of 100 million barrels per day last seen before the pandemic, according to data from British company BP Plc.
This resurgence, according to the firm, has pushed prices to multi-year highs and threatens the global economic recovery due to significant power supply constraints.
“At some point in the next year we will be above pre-Covid levels,” BP CFO Murray Auchincloss said on a conference call on Tuesday.
“OPEC and its allies are doing a good job managing the balance, so we continue to be constructive about oil prices,” he said.
The surge back to 100 million barrels per day has occurred even though air travel has yet to fully recover from the pandemic. The company highlights how demand for diesel and petrochemicals has driven oil consumption in the last two years.
US oil production is roughly 1.7 million below pre-Covid-19 levels as shale companies focus on driving returns for investors rather than chasing growth.
The result is a global supply shortfall of about 2.5 million barrels per day, according to Goldman Sachs Group Inc.
“Winter seasonality and the recovery in international demand for aircraft” mean that consumption will hit record levels early next year, Damien Courvalin, an oil analyst at Goldman Sachs, said in a note.
With information from Bloomberg.
.
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
