Oil Demand to Post Record Grow -Goldman Sachs Outlook

Global average demand for crude oil is set to rise to record levels, in the next two years, supported by increased demand for the aviation and transportation sectors, as well as of infrastructure, Goldman Sachs Financial and Investment Services expected.

“There has already been a record rise in demand for oil, even before the emergence of this latest variant of the Coronavirus, Damien Corvalin, Director of energy research, at Goldman Sachs, told reporters, Reuters reported, adding that there are an increase in demand for the oil, at the aviation sector and the global economy is still growing.

We will see how the average demand would rise to a new record level, in 2022 and then in 2023,” he explained.

Recovery was hampered by the high incidence of Covid-19, in regions of the northern hemisphere, during the winter, but closures remain limited, he elaborated.

A steady growth in global demand for oil until the end of the current decade, would reach about 106 million barrels per day, as the belief is that the transition to clean energy sources will be gradual, Goldman Sachs envisioned.

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, according to Corvalin.

Nearly six million electric cars are sold, annually, nowadays, but this only reduces .

demand by less than 100,000 barrels per day, in a market of 100 million barrels per day capacity, so this is still a very tiny amount, to factor in, in realizing a bold shift, to the point of becoming a game changer, in the oil landscape and its dynamics, in play.