Oil prices have broken through the $80 tipping point, why do experts say this time will not destroy demand?

On October 11, oil analyst Tsvetana Paraskova wrote that by the end of this year, global oil demand is expected to return to pre-epidemic levels; U.
S.
demand is leading, with demand for petroleum products this summer near an all-time high; The introduction of vaccines in Asia will accelerate the recovery
of global oil demand.
$80/barrel is often seen as the trigger point for a collapse in demand, but prices that have disrupted demand this winter are likely to be higher
due to tight global gas and coal markets.
On October 11, oil analyst Tsavetana Paraskova wrote that the $80 oil price would not hit demand, and analyzed the reasons behind it: by the end of this year, global oil demand is expected to return to pre-epidemic levels; U.
S.
demand is leading, with demand for petroleum products this summer near an all-time high; The introduction of vaccines in Asia will accelerate the recovery
of global oil demand.

As global demand continues to recover, and record natural gas prices spur more demand for petroleum products for power generation and heating, oil prices are expected to continue to rise
in the coming months after breaking $80.
While concerns linger in many countries about the Delta variant, advanced economies ease lockdowns
as vaccination rates rise and economies recover strongly.
While developing economies in South and Southeast Asia are still implementing intermittent local lockdowns, global oil demand continues to grow and will reach pre-pandemic levels
within a few months.

In addition, soaring natural gas and electricity prices have driven up the overall energy market and will lead to more demand for petroleum products, especially in parts
of Asia.

Wood Mackenzie, vice president of the Americas region, noted that while the outbreak is still raging, global oil demand continues to recover
at a healthy pace.
The pandemic remains a factor affecting the global oil market, but "its impact on the world economy and energy demand is fading
.
" ”

Like many other consulting firms, analysts and oil majors, WoodMac expects global oil demand to reach pre-pandemic levels in the third quarter of 2022, even if demand growth is uneven
across regions.
According to Wood Mackenzie, global oil demand is expected to grow to about 99 million bpd in the quarter, up from 97 million bpd in Q3 and up 6%
in Q3 2020.

Many analysts and oil companies believe that global oil demand will return to pre-COVID-19 levels
as early as early 2022.
If it had been earlier, it would have been restored to that level
by the end of the year.

Wood Mackenzie's Crooks noted that U.
S.
oil demand is at the forefront of recovery, with refined product demand this summer near record highs, around 21 million bpd
.
He added: "Travel data shows that people are still driving
despite the Delta's variant causing a surge in infections in the United States.
"

The rollout of vaccines in developing economies in Asia could ease pressure from intermittent lockdowns in the
region.

Suzanne Danforth, head of the U.
S.
downstream oil market at WoodMackenzie, said countries with a slower pace of demand recovery are expected to catch up
.

As demand continues to recover, the supply side has also put upward pressure
on oil prices.
Last week, OPEC+ decided to keep plans to ease production cuts unchanged
last week, despite calls from oil-consuming countries, including the United States, to increase supply.

OPEC+ will add 400,000 bpd of supply in November, the lowest level
the market expected ahead of the meeting.
The tightening of commodity markets for oil and other energy sources has reignited speculation about how high oil prices could rise and whether they can reach $100 a barrel, especially if temperatures in the northern hemisphere are colder this winter than in previous years
.
$80/barrel is often seen as the trigger for a collapse in demand, but oil prices that are damaging to demand this winter are likely to be higher
due to tight global gas and coal markets.

At 8:42 Beijing time on October 12, the price of Brent crude oil main contract was reported at $83.
36 / barrel
.