BP: oil demand has already exceeded 100 million barrels per day

Global oil demand has already passed the 100 million barrels per day (bpd) threshold last seen before the pandemic, believes supermajor BP.

Demand will continue to rise and reach pre-COVID levels at some point in 2022, BP CFO Murray Auchincloss said on a conference call following the release of third quarter results on Tuesday.

“Somewhere next year we will be above pre-Covid levels,” Auchincloss said on the call, as worn by Bloomberg.

“OPEC + is handling the balance well, so we remain constructive on oil prices,” added BP CFO during the call for BP’s third quarter results, which exceed analysts’ estimates.

Crude Brent prices rose 7% to an average of $ 74 a barrel in the third quarter and topped $ 80 a barrel in recent weeks, Auchincloss said. noted when presenting Q3 results.

“This reflects the strong rebound in demand for oil as the impact of COVID fades along with measured increases in OPEC + supply. As a result, inventories have declined to return to pre-market levels. pandemic. As we look towards the end of the year, we expect oil prices to be supported by the continued decline in inventories, with the potential for further demand from gas to oil, ” added the BP executive.

BP’s take on global oil demand is broadly in line with most analyst and industry estimates that consumption is returning to pre-pandemic levels as early as this quarter or early next year. .

The oil industry is “massively under-investing” in supply to meet growing demand, which is expected to return to pre-COVID levels by late 2021 or early 2022, said Greg Hill, president of the US oil producer Hess Corp. end of September.

OPEC predicts that global oil demand in 2022 will average 100.8 million bpd next year, while the International Energy Agency (IEA), albeit with a more conservative estimate of the request for 2022, waits consumption at 99.6 million bpd in 2022, “slightly above pre-Covid levels”.

By Tsvetana Paraskova for Oil Octobers

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Felix J. Dixon