Global oil demand could set a record this year

Global oil demand is expected to reach a record 101.7 million barrels a day this year, well above pre-pandemic levels, according to a report released by the International Energy Agency (IEA) on January 18, local time.

In its report, the IEA said it has raised its forecast for global oil demand growth this year by nearly 200,000 barrels a day to 1.9 million barrels a day, with total global oil demand reaching a record 101.7 million barrels a day, citing improving economic prospects and lower international oil prices.

The IEA highlights that demand for jet fuel and kerosene is expected to rise by 850,000 b/d this year as international travel recovers, accounting for nearly half of all growth. It also said domestic oil demand could rebound quickly as economic activity in China picks up. The IEA also raised its forecast for global oil production this year, predicting it will rise to a record 101.1 million barrels a day.