Demand: Omicron Impact Fades, Oil Consumption Picks Up Steam

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Global demand has withstood the fast-spreading Omicron variant better than expected. Road mobility has held relatively steady, even surpassing 2019 levels in the US the past two months. In fact, US demand was 200,000 barrels per day higher in November and December than the same two months in 2019. Global air travel remains below pre-pandemic levels, but passenger numbers were trending higher across all regions at year's end. They are expected to remain resilient going into 2022 although the start is slow with lower international ticket sales and grounded flights in Asia, especially China after recent lockdowns. Taken together, the unexpected demand strength has translated into higher product demand in December, especially for gasoline, jet fuel, and very-low-sulfur shipping fuel.

Oil Demand
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