Oil demand to make record recovery in 2021 after historic fall

Global oil demand is on pace to fall by a record amount this year due to the pandemic, but will rebound to its largest increase ever in 2021, the International Energy Agency projected Tuesday.

World oil consumption will drop by 8.1 million barrels per day in 2020 to 91.7 million barrels per day before recovering by 5.7 million barrels per day in 2021, the largest annual increase ever recorded.

The world will consume 97.4 million barrels per day in 2021, still lower than the globe’s normal appetite of 100 million barrels per day before the coronavirus forced people into their homes and to drive and fly less.

Total oil demand might not fully recover to pre-coronavirus levels until 2023, the IEA said.