Oil Consumption to Rebound in 2021, but Pandemic Lurks as Wildcard, EIA Says

Oil consumption will rise in 2021 alongside a global economic recovery and increased travel, though demand this year is not likely to match the levels prior to the pandemic, the U.S. Energy Information Administration (EIA) said.

In a supplement to its monthly Short-Term Energy Outlook (STEO) report, the agency forecast global oil consumption would gather momentum “as the year progresses,” growing by 5.6 b/d, or 6%, for the full year. EIA forecasts that the United States will account for 1.4 million b/d of the growth.

The agency cited an expected “return to more normal consumer behavior” by midyear that could drive increased travel, boosting demand for jet fuels and gasoline derived from oil. This is based in part on the current rollout of coronavirus vaccines across...