2021 Summer Gasoline Demand Set to Surpass Pre-Pandemic Levels, Experts Predict

Despite recent signs of weakness in the global gasoline market, demand is expected to remain robust this summer, according to Rystad Energy A/S. The company predicts that consumption will exceed pre-pandemic levels seen in 2019, with global demand projected to reach 26.8 million barrels a day in August. This positive assessment is shared by other industry experts, including Standard Chartered Plc, who dismissed pessimism over US gasoline demand as “unwarranted” due to historically strong revisions in actual consumption figures. While pockets of softness have been observed in recent weeks, particularly in the US and Asia, where refinery profits from making gasoline have fallen, this is expected to be a temporary blip, with strong summer demand forecasted to lift prices. Industry veterans such as Jeff Currie, former Goldman Sachs executive and current chief strategy officer for energy pathways at Carlyle Group Inc., have also expressed confidence in this year’s US summer driving season. As road travel continues to recover from the pandemic and the US presidential election approaches, more Americans are expected to hit the roads during the upcoming Memorial Day weekend. Rystad’s Mukesh Sahdev attributes this to an overall tightening of supplies in both the US and Europe, resulting from recent refinery closures and associated gasoline-producing unit shutdowns.