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Oil demand may not return to 2019 level due to changes in global energy policy

Amid the transition to new energy policy in the world, the Russian authorities expect an increase in the downward dynamics of the oil market in the medium and long term together with the ongoing increase in price volatility

MOSCOW, September 21. /TASS/. Oil demand may not recover to 2019 level amid changes in the global energy policy, according to the documents attached to Russia’s draft federal budget for 2022-2024, which were obtained by TASS.

"A sharp rise in payments for carbon emissions will lead to a significant change in the global energy balance, and a decline in oil demand - according to some estimates, oil demand may not recover to the level of 2019," the documents say.

Amid the transition to new energy policy in the world, the Russian authorities also expect an increase in the downward dynamics of the oil market in the medium and long term together with the ongoing increase in price volatility.

Earlier, Russian Deputy Prime Minister Alexander Novak said that the oil market could fully recover in 2022. He noted that Russia expects a recovery in oil demand growth in 2021 by 5.8-6 million barrels per day. In his opinion, the OPEC+ deal made it possible to remove the excess supply on the market, which had accumulated during the period of declining demand.

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