BAKU, Azerbaijan, Dec.16
By Leman Zeynalova – Trend:
When kerosene is excluded, oil product demand in Q3 2021 had fully recovered — compared to the same period in 2019, Trend reports with reference to GlobalData.
The company notes that global demand for oil products has seen strong recovery this year, however, depressed kerosene demand from the aviation sector is a major barrier to full recovery.
“Demand for kerosene, which is mostly used for jet fuel, has hovered at around two thirds of pre-COVID-19 levels throughout this year. Therefore, when this is included in the analysis of product flows, total oil product demand is pulled 3 percent below pre-COVID levels for Q3,” said the company.
Will Scargill, Managing Energy Analyst at GlobalData, notes that China has been the driver for the global demand recovery, led by gasoline in the transport sector and continued growth in naphtha and LPG as the country expands its petrochemicals sector.
“Diesel and rerosene are both yet to see demand fully recover. China has not provided the same boost for diesel as other products, as the country’s use was already in decline pre-COVID-19 and global demand in Q3 2021 remained around 4 percent below 2019 levels,” he says.
Kerosene demand saw the greatest impact from COVID-19 due to restrictions on air travel. While the sector recovered, to an extent, in the second half of 2020, recovery has stalled this year amid waves of infections and restrictions — with new restrictions linked to the Omicron variant likely to hit demand again in Q4.
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