The new year could bring a “strong tailwind” of activity to the oil and gas sector to the benefit of services companies, according to Baker Hughes boss Lorenzo Simonelli.

The chief executive said the growth of the global economy may slow in the coming year, but energy demand will likely continue to rise as the world moves beyond the Covid pandemic.

Oil demand will likely reach pre-pandemic levels by the end of 2022, but spending discipline from US producers and the conservative approach taken by Opec could keep markets tight, Simonelli added.