Three biggest energy authorities - the Energy Information Administration, The International Energy Agency and OPEC have forecasted that the demand will slowly rise and regulate the pre-crisis till 2022.
Future demand of Fuel
Rising levels of oil in floating storage, price cuts for Saudi crude has a slowdown in Chinese imports. Factors which has recently pressured oil prices and the questions which triggered behind are:
1). Demand is not improving as it should be and it is a fuelling fear for long-term demand, too.
2). Would Big Oil’s bet on plastics pay off?
3). Will jet fuel demand ever get back to pre-pandemic levels?
4). Will demand for gasoline?
The future of the oil industry hangs on the answers to these questions.
The coronavirus pandemic wiped out millions of barrels in fuel demand as countries locked down to contain the spread of disease. This demand is now returning as lockdowns ended, but it is not rising as quickly and as strongly as some may have wished, prompting bleak forecasts.
Yet U.S. gasoline inventories have registered some quite substantial drawdowns over the past three months—driving season is the most active demand period for gasoline—and Chinese refiners have been importing oil like there is no tomorrow. The picture is not that bleak. It will just take longer for fuel demand to recover.
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Last month, the three biggest energy authorities- the Energy Information Administration, The International Energy Agency and OPEC have forecasted that the demand will slowly rise and regulate the pre-crisis till 2022. Some analysts argue that demand will never return to pre-crisis level because of the reason if vaccine development takes more than a few months the world begins settling into the new normal of much few were flights, less travel overall and less consumption.
The short answer about the future oil from where it will come is, oil is going nowhere and sooner aur latter the economy will recover from the coronavirus pandemic. Transport fuel also has a huge market for crude oil, this market will bleak the current Outlook. Currently, few stocks are growing because more gasoline and distillates are being produced then are being used, in the future, the market will rebalance. In the near future, people will either get used to the new normal and refineries will adjust their output, or a vaccine will be made available and we will return to our old ways.
Even a jet fuel demand is not a kist cause because air travel has been perhaps the hardest hit segment of the transport industry amid the pandemic. A recent report on air travel subscriptions forecasts that the global market will grow at a compound annual rate of 3.4 % by 2027. However, it will be a stable growth where all the airlines are struggling, whereas some airlines are failing to survive the current downturn.
The oil industry is not a happy place right now, because numerous doubts are occurring for the stability of the market and the demand and consumption of oil.
