SINGAPORE– Global oil demand in transportation sectors, with the exception of jet fuel, could go back to pre-pandemic levels by the 4th quarter of 2021, draining excess materials from the market, Vitol’s Ceo Russell Hardy said.
Worldwide oil stocks grew by 1.2 billion barrels in storage tanks and on the water after the Company of the Petroleum Exporting Countries (OPEC) meeting in April, Hardy stated at the virtual Asia Pacific Petroleum Conference.
” The market is gradually chewing through that excess inventory,” he stated, including that about 300 million barrels have been drawn down from this year’s peak and the company expects a comparable volume to be secured by year-end.
” In 2021, we see the market probably drawing comparable levels once again and that gets us back to regular stock levels towards the end of 2021,” Hardy stated.
Diesel and gasoline need will likely have recovered by the fourth quarter next year, going back to pre-pandemic levels seen in 2019, he also said.
” That’s typical oil need with the exception of jet fuel. Jet has got a long method to go as this conference is evidence to people are not moving around,” Hardy said.
This is the very first time in 36 years of existence that the APPEC conference, Asia’s greatest event of oil traders, is being held practically due to the fact that of the difficulties in traveling throughout the COVID-19 pandemic. (Reporting by Florence Tan and Roslan Khasawneh; Modifying by Christian Schmollinger and Tom Hogue)
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