EIA forecasts global oil consumption to increase by 3.8 million b/d in 2022 to average 101.3 million b/d
The global oil consumption will increase by another 3.8 million b/d in 2022 to an average of 101.3 million b/d, the US Energy Information Administration (EIA) announced Wednesday in its March Short-Term Energy Outlook (STEO).
EIA’s forecast of declining crude oil prices and a more balanced oil market reflect global oil supply surpassing oil demand during the second half of 2021.
“EIA’s forecast of downward oil price pressure and increased crude oil availability has several key uncertainties. The speed of actual demand recovery, based on vaccination rates and the degree to which travel and employment conditions return to pre-COVID levels, remains an important uncertainty on the demand side. At the same time, the degree to which OPEC+ production cuts will continue after April remains a source of uncertainty on the supply side, especially because increasing crude oil prices will continue to provide an incentive for OPEC+ participants to agree to production increases in later meetings. Finally, the responsiveness of U.S. tight oil production to higher oil prices is also uncertain,” the EIA said.