Nonetheless, addressing to a global-scale rollout of pandemic vaccination campaign with oil demands scaling higher, the Agency had forecasted that global oil consumption would surge 5.3 million bpd (barrels per day) to 97.5 million bpd this year.
US Energy Information Administration (EIA) said on Tuesday that US crude production was expected to rise from its prior forecast in 2021 and global oil consumption would average around 97.5 million barrels per day in 2021, roughly 5.3 million barrels per day up from 2020, pointing towards a rapid recovery in global economy this year.
In point of fact, previously the US Department of Energy Agency’s EIA report had estimated that US crude output would decline by 290,000 barrels per day on a monthly basis, however, according to US EIA’s most recent forecast, US crude oil output has been expected to decline by 160,000 barrels per day to 11.15 million barrels per day in 2021, signalling an abrupt rise in US crude oil output with US oil drilling rig counts soared to 310 last week, the strongest level since May last year, data from US energy services provider Baker Hughes had revealed.
On top of that, US Energy Information Agency had held on to its prior forecast about oil consumption in the United States adding that the consumption of US petroleum alongside other liquid fuels would rise 1.41 million barrels per day to 19.53 million barrels per day this year.
Global crude oil consumption to soar in 2021
In factuality, latest forecast from US EIA came against the backdrop of a high-flying US crude futures’ prices that scored more than a seven per cent in weekly percentage gains last week, mostly buoyed up over hopes of a near term economic recovery with US factory activity hovering above their three-year peak in February.
Alongside this, new orders for US-made core capital goods had also surged in February, signalling a steep rebound in oil consumptions in the United States, though a maverick rally in China factory activities fizzled out last month with outputs declining for the first time in nine months.
Nonetheless, addressing to a global-scale rollout of pandemic vaccination campaign with oil demands scaling higher, the Agency had forecasted that global consumption of liquid fuels and petroleum would surge 5.3 million bpd (barrels per day) to 97.5 million bpd this year, while EIA had also estimated that global oil consumption would step up further by another 3.8 million barrels per day to an average of 101.3 million bpd in 2022.
Originally published at Financial-world