Energy Investor Notes - April 12
Posted: Mon Apr 12, 2021 12:17 pm
Airline Travel Starts to Climb — Along With Oil Demand
After an unprecedented COVID-related slump, air travel is finally picking back up. Flightradar24 analyzed a grand total of 77,708 flights for both passenger and freight — a number that exceeded the previous peak during the most recent Christmas holiday.
The number of air travelers per day rose to more than 1.5 million by the end of March, with ticket sales hitting numbers that haven’t been reached since pre-pandemic times.
As major oil consumers like the U.S. and China start to return to regular travel, increased fuel demand translates to increased oil demand. This much-needed stimulus should help the industry bounce back to pre-COVID levels.
The EIA Just Raised Its LNG Demand Forecast
Even with global prices increasing, analysts at the EIA decided to raise their U.S. natural gas consumption forecast for the rest of 2021.
Based on the new calculations, residential and commercial gas consumption is forecast to rise by a total of 1.1 billion cubic feet per day (Bcf/d) from 2020, while industrial use is expected to climb 1.4 Bcf/d.
The EIA clearly expects power demand to continue increasing as the economy slowly recovers from a wild year.
After an unprecedented COVID-related slump, air travel is finally picking back up. Flightradar24 analyzed a grand total of 77,708 flights for both passenger and freight — a number that exceeded the previous peak during the most recent Christmas holiday.
The number of air travelers per day rose to more than 1.5 million by the end of March, with ticket sales hitting numbers that haven’t been reached since pre-pandemic times.
As major oil consumers like the U.S. and China start to return to regular travel, increased fuel demand translates to increased oil demand. This much-needed stimulus should help the industry bounce back to pre-COVID levels.
The EIA Just Raised Its LNG Demand Forecast
Even with global prices increasing, analysts at the EIA decided to raise their U.S. natural gas consumption forecast for the rest of 2021.
Based on the new calculations, residential and commercial gas consumption is forecast to rise by a total of 1.1 billion cubic feet per day (Bcf/d) from 2020, while industrial use is expected to climb 1.4 Bcf/d.
The EIA clearly expects power demand to continue increasing as the economy slowly recovers from a wild year.