Oil demand and prices are unlikely to return to pre-Covid levels until 2022 or 2023, according to the latest quarterly energy survey conducted by the Federal Reserve Bank of Kansas City.


The Kansas City Fed, as it is known, every quarter surveys current and expected energy activity across the Midcontinent, as well as expectations for oil and natural gas prices among firms in the Tenth Federal Reserve District.

The district covers the northern half of New Mexico, the western third of Missouri, and all of Colorado, Kansas, Nebraska, Oklahoma and Wyoming.

“Over a quarter of firms surveyed expected global oil demand to return to pre-Covid levels by 2Q2021, but the majority of contacts don’t expect oil demand to fully rebound until 2022 or 2023,” said Kansas City Fed...