Skip to main content

A recovery in demand to support prices

The rebound in global economic activity this year will lead to a strong pick-up in demand for energy commodities. Arguably, this has already happened in the gas and coal markets as industrial activity has revived in both China and some developed economies. By contrast, oil consumption will remain subdued for a while longer in most economies until virus-related restrictions on leisure activity and travel are lifted, which we expect by Q3. That said, we also expect supply, particularly in the oil market, to bounce back and to increasingly act as a drag on prices as we move into 2022.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.