'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 i
...
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.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
Alert Me When Launched
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Lexus Ux 300e (HT Auto photo)
UPCOMING
BatteryCapacity Icon 54.3kWh Range Icon400 km
₹ 75 - 85 Lakhs
Alert Me When Launched
Hyundai Kona Electric 2024 (HT Auto photo)
UPCOMING
BatteryCapacity Icon64.8 kWh Range Icon418 Km
₹ 25 Lakhs
Alert Me When Launched
Maruti Suzuki Xl5 (HT Auto photo)
UPCOMING
Engine Icon998 cc FuelType IconPetrol
₹ 5 Lakhs
Alert Me When Launched
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
Alert Me When Launched

"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.

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
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.