Oil prices at multi-year high with demand set to exceed pre-pandemic levels by 2022

Brent crude oil futures made it to $72.73 per barrel on Friday

Demand for oil is expected to surpass pre-pandemic levels before the end of 2022, according to the International Energy Agency (IEA).

The Financial Times reported that consumption fell by a record 8.6m barrels per day in 2020 as lockdowns were mandated across the world.

The IEA anticipates an additional 3.1m barrels per day increase in 2022, bringing the average to 99.5m barrels per day, with an increase towards the end of the year that will go past the level of demand last seen before the coronavirus pandemic.

However, the agency also said that oil’s recovery is likely to be “uneven” among both different regions and business sectors. While any delays in the vaccine roll-out could lead to further issues.

Oil prices also jumped to a multi-year high on Friday look set for a third consecutive week of gains as nearer-term expectations are that there will be a recovery in demand across the world as restrictions are eased.

Brent crude oil futures made it to $72.73 per barrel, one day after closing at its highest point since 2019.

Analysts at Goldman Sachs believe that Brent crude oil could reach $80 per barrel this summer.

Support for the price of oil also came as talks between Iran and other nations over a nuclear deal stalled.