Latest forecast by Rystad Energy says global oil demand will drop by 1.4 million barrels per day.
The forecast said the 1.4 million bpd loss would sink oil demand to 99.6 million bpd on average, below 2019 levels of 100.2 million bpd.
It added that rebound in this demand isn’t expected to happen until next year at the soonest.
The drop in oil demand will likely come from the Russian invasion of Ukraine, soaring inflation, China’s covid-inspired lockdowns, and supply chain disruptions. And even more oil demand pressure could be applied through future lockdowns or geopolitical issues.
“Shrinking demand is a direct result of the impact of lower economic activity globally,” the consultancy said, adding that such a demand decrease could ease today’s tight oil markets, calming oil prices.
