According to Bloomberg, ConocoPhillips‘ Chief Executive Officer, Ryan Lance, believes that crude oil consumption will recover to pre-Covid-19 levels by early 2022, while supply will remain tight.

ConocoPhillips is to completely take over Shell’s Permian assets in a $9.5 billion deal, making it the second-largest oil producer in the Permian, trailing only Exxon and ahead of Chevron and Occidental.

He said: “We see the demand improving, we see probably getting back to pre-pandemic levels by the end of fourth quarter or the first quarter of next year and the market getting relatively balanced.”

“We’re pretty bullish on the next couple of years.”

Lance’s positive outlook on oil demand mirrors that of OPEC and the International Energy Agency. Earlier this month, the oil-producing cartel increased its 2022 oil demand growth forecast by 900,000 bpd, which was higher than projected.

According to OPEC’s Monthly Oil Market Report from last month, global oil demand is predicted to rise by roughly 4.2 million bpd next year.

The International Energy Agency reportedly predicted an increase in oil consumption of 1.6 million barrels per day (bpd) next month. The agency scaled down its full-year 2021 demand growth prediction in the most recent edition of its monthly oil market report but said that pent-up demand and vaccination programmes are projected to lead to a “robust rebound” in global oil demand starting in the fourth quarter of this year.