The investment bank, Goldman Sachs, expected the global average demand for crude oil to rise to record levels in the next two years, supported by increased demand for the aviation and transportation sectors, as well as the construction of infrastructure.
“There’s already been a record spike in demand even before this latest mutation (of the coronavirus) emerged,” Damian Corvalin, director of energy research at Goldman Sachs, told reporters.
“You will see how the average demand will rise to a new record in 2022 and then in 2023,” he said.
Corvalin added that recovery has been hampered by the high incidence of COVID-19 in regions of the northern hemisphere during the winter, but the closures are still limited.
And Goldman Sachs expects a steady growth in global demand for oil until the end of the current decade, to reach about 106 million barrels per day, as it believes that the transition to clean energy sources will be gradual.
Corvalin said electric cars will reduce demand for gasoline a little, but there is still a long way to go for trucks and planes to switch to a carbon-neutral fuel.
“Nearly six million electric cars are sold annually now. But this only reduces demand by less than 100,000 barrels per day in a market of 100 million barrels per day, so this is still a small amount,” he added.