Continued low demand for jet fuel will account for 80 percent of next year’s 3.1-million-bpd gap in oil demand compared to pre-pandemic levels, the International Energy Agency (IEA) said on Tuesday. In its closely watched monthly Oil Market Report, the agency revised down its 2021 oil demand outlook by 170,000 bpd compared to last month’s expectations, largely due to another downgrade in estimates of jet fuel demand next year. Oil demand this year is estimated at 91.2 million bpd, which is 8.8 million bpd below the 2019 level and down by 100,000 bpd from the November report. Next year, global oil demand will rebound and rise by 5.7 million bpd compared to 2020 levels. Yet, this is a smaller rebound than earlier expectations because of continued weakness in the aviation sector, the IEA said. The weak aviation industry prompted the international agency to revise down its oil demand forecast […]

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