International Energy Agency Look into Oil After Covid

As life begins to resemble what was once normal pre-pandemic, the impact of Covid-19 is still being felt in the form delays and shortfalls across all industries. The oil and gas industry, for example, was severely impacted since most people did not commute as much in the last year causing demand for gasoline to fall dramatically. The International Energy Agency originally projected a decline of 90,000 barrels of oil in 2020 as compared to 2019. Pre-pandemic, the IEA projected an increase of 800,000 barrels. China, the world’s top energy consumer, was hit the hardest and thus had a devasting toll on demand. The price per barrel saw an unprecedented freefall selling under $30 per barrel as of March 16, 2020. With life opening back up and people returning to the age-old commute and proverbial “salt mines,” consumption should return to normal. The rate at which pre-pandemic levels are reached remains yet to be unseen, but as of June 2021, The IEA projects global oil demand to return to pre-pandemic levels by the end of 2022.

Contributor: Jacob Lane

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Resources: 

Iea. “Oil Market Report - June 2021 – Analysis.” IEA, www.iea.org/reports/oil-market-report-june-2021.

Suneson, Grant. “Industries Hit Hardest by Coronavirus in the US Include Retail, Transportation, and Travel.” USA Today, Gannett Satellite Information Network, 21 Mar. 2020, www.usatoday.com/story/money/2020/03/20/us-industries-being-devastated-by-the-coronavirus-travel-hotels-food/111431804/.