The latest monthly oil market report from OPEC showed that there won't be any return for the pre- COVID oil demand anytime soon. Whilst oil demand improved on a quarter-on-quarter basis, it was still significantly lower on a year-on-year basis.
Oil demand in the third quarter of 2020 rose by 8.4 million barrels per day, but was 9.5 million barrels per day lower than the same period last year.
Whilst OPEC expects to see four out of five quarter-on-quarter rises in oil demand for now until fourth quarter of 2021, demand is still expected to be 3 percent lower than pre-COVID levels by the end of 2021.
In 2020 as a whole, OPEC still expects oil demand to decline by 9.5 million barrels per day, but then expects a rebound of 6.6 million barrels per dayto 96.8 million barrels per dayin full year 2021.
On a country level, largest oil consuming countries like US, China, India and Europe are expected to make up 53 percent of the expected year-on-year declines in 2020, with the same group accounting for just over two thirds of oil demand growth in full year 2021.