Global oil demand climbs back above 100 million barrels per day, BP says

As world leaders discuss tackling climate change,

Consumption of fossil fuels is picking up despite the growing urgency to tackle greenhouse gas emissions. The resurgence is pushing prices to multi-year highs and threatening the global economic recovery due to severe constraints in energy supply.

This has been a boon for BP and its peers, who have just reported big profit gains, but prompted major consumers to call the OPEC + cartel to turn on the taps.

“Somewhere next year we will surpass pre-Covid levels,” BP CFO Murray Auchincloss said on a conference call on Tuesday.

Meanwhile, BP on Tuesday reported a sharp increase in third-quarter profits, driven by rising oil and natural gas prices which have soared this year as economies recover from the pandemic.

BP’s underlying replacement cost profit, the company’s definition of net profit, hit $ 3.32 billion in the third quarter, beating analysts’ expectations of $ 3.06 billion. That compares to $ 2.8 billion in profits in the second quarter and $ 86 million a year earlier, when demand and prices for energy collapsed due to the coronavirus outbreak.

The company said it would repurchase an additional $ 1.25 billion in shares, using the proceeds of soaring energy prices to entice investors who have become disenchanted with oil and gas. The return to 100 million barrels per day has occurred despite the fact that air transport has not yet fully recovered from the pandemic. It highlights how much demand for diesel and petrochemicals has boosted oil consumption over the past two years.

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Felix J. Dixon

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