Paul Favret on How Much Oil the World Has Been Using

For Paul Favret, one of the reasons there's so much interest in oil and gas bonds right now, along with the high demand for high-yield energy bonds, is how much oil usage has been used recently. This year's expected global oil demand is about to grow to surpass even pre-pandemic levels.

World Oil Demand

According to industry analysts, the growth and demand of oil are about to outstrip the supply overall. In 2021, the demand rose by 5.5 million b/d, and so far, in 2022, there have been 3.3 million b/d. While some analysts feel that this year could go up to $90 per barrel, the current pace may escalate to $100.

How much oil is it?

Paul Favret has stayed on top of the global oil demand and has looked into the reports from the International Energy Agency. According to the studies published for the agency's monthly report, the world has used more oil for the past decade and a half than they have since 2007. With up to 10 million barrels per day, oil is in higher demand than ever.

It's leading to 2.9 billion barrels, an additional demand that amounts to roughly five times the US Strategic Petroleum Reserve. It's worth more than France, Spain, Italy, and the UK use annually.

Lowering Supply

This current demand led to a degree of stockpiling, but those stockpiles are also dropping below pre-pandemic levels. Paul Favret understands that the global oil inventories since 2019 have gone down from January to February. Around 660 million barrels of those surplus stockpiles have now been used up.

There is no doubt that the world is using even more oil than ever before. This is leading to the high demand and the increase in prices. If investors are observing, they need to pay attention to this supply and demand, as this could lead to changes in profits and pricing within the year.