'Gasoline, diesel demand likely to return to pre-Covid-19 levels by Q4 2021'

Vitol's CEO Russell Hardy also said that global oil inventories grew by 1.2 billion barrels in storage tanks and on the water after the OPEC meeting in April.
By : Reuters
| Updated on: 14 Sep 2020, 10:27 AM
File photo of a gasoline pump used for representational purpose only (REUTERS)
File photo of a gasoline pump used for representational purpose only (REUTERS)
File photo of a gasoline pump used for representational purpose only (REUTERS)
File photo of a gasoline pump used for representational purpose only

Global oil demand in transportation sectors, with the exception of jet fuel, could return to pre-pandemic levels by the fourth quarter of 2021, draining excess supplies from the market, Vitol's Chief Executive Officer Russell Hardy said.

Global oil inventories grew by 1.2 billion barrels in storage tanks and on the water after the Organization of the Petroleum Exporting Countries (OPEC) meeting in April, Hardy said at the virtual Asia Pacific Petroleum Conference.

"The market is slowly chewing through that excess inventory," he said, adding that about 300 million barrels have been drawn down from this year's peak and the company expects a similar volume to be taken out by year-end.

Trending Cars

Find More Cars

(Also read: India's fuel demand fell 15.6% year-on-year in August)

"In 2021, we see the market probably drawing similar levels again and that gets us back to normal stock levels towards the end of 2021," Hardy said.

Diesel and gasoline demand will likely have recovered by the fourth quarter next year, returning to pre-pandemic levels seen in 2019, he also said.

(Also read: This US state's gasoline tax rises 22% on effects of stay-at-home order)

"That's normal oil demand with the exception of jet fuel. Jet has got a long way to go as this conference is evidence to people are not moving around," Hardy said.

This is the first time in 36 years of existence that the APPEC conference, Asia's biggest gathering of oil traders, is being held virtually because of the difficulties in travelling during the Covid-19 pandemic.

First Published Date: 14 Sep 2020, 10:27 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city