PTTEP sees oil demand return to pre-Covid levels in 2022

By Yongchang Chin

PTT Exploration & Production PCL said it expected oil demand to return to pre-Covid levels of 100 million barrels per day this year, although there could be some price weakness at first quarter due to partial lockdowns due to the Omicron variant.

Supply is also expected to be low, given the decline in Russian production and the lack of investment in exploration and production in recent years by many countries, the Thai energy producer said on Thursday.

The PTTEP forecasts that crude prices in Dubai will average between $65/bbl and $85/bbl this year, compared to an average price of $69.4/bbl in 2021 and $42.3/bbl in 2020 .

Regarding the global liquefied natural gas market, PTTEP said oversupply is expected to continue through 2022, with total production capacity from existing and upcoming LNG projects increasing by 27 million tonnes per year. compared to 422 million tonnes per year in 2021. This compares to forecasts. LNG demand at 399 million tonnes per year, he said.

PTTEP forecasts its average sales volume for the first quarter of 2022 at 436,000 barrels of oil equivalent, and for the full year at 467,000 boe, driven by new production from Malaysia, Oman and Algeria.

The company reported earnings of $1.21 billion in 2021, up from $720 million the previous year. Its revenue was $7.31 billion in 2021 compared to $5.36 billion in 2020.

Write to Yongchang Chin at yongchang.chin@wsj.com


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Felix J. Dixon