IEA: global oil demand has not peaked yet

US, WASHINGTON (ORDO NEWS) — The head of the International Energy Agency (IEA) Fatih Birol warned that world oil consumption has not reached a peak, writes Bloomberg.

“A sustained economic recovery and low oil prices are likely to bring world oil demand back to where it was, and even higher,” Birol said.

Last year, the world consumed nearly 100 million barrels of oil per day. Some representatives of the energy industry believe that this could be the peak of global demand.

The coronavirus pandemic has forced countries around the world to impose restrictions on movement and to suspend the operation of enterprises, which hit the demand for fuel .

However, according to Birol, coronavirus will only briefly reduce oil demand. Consumption will fall in 2020 to approximately 91 million barrels per day, after which it will recover in 2021.

“Behavioral changes in response to the pandemic are noticeable, but not all of them are negative for the use of oil. People work more from home, but when they travel, they are more likely to choose cars rather than public transport,” the IEA head said in an interview Bloomberg News.

The agency is of the opinion that global oil demand will continue to grow over the next decade before reaching a plateau around 2030.

Meanwhile, Birol called on governments to use their economic recovery packages to tackle climate change, spending on green energy to help achieve the goals set in the 2016 Paris Agreement.

 

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