Tank trucks will be on Tuesday, April 27, 2021 at Chevron Corp in San Aard, California, USA. You will pass the well pump jack operated by.
David Paul Morris | Bloomberg | Getty Images
The International Energy Agency announced on Tuesday that oil demand will be lower than next year’s forecast as it has revised its daily outlook for 100,000 barrels per day both for the rest of the year and in 2022.
The IEA reports that global oil demand will increase by 5.4 million barrels per day in 2021 and 3.3 million barrels per day in 2022 to 99.5 million barrels per day, the pre-pandemic level. He said it was expected to reach.
However, recovery is expected to be impacted by a new surge in Covid-19 cases where jet fuel has been hit hard, the report said. The author stated that the emergence of new Omicron variants has already introduced new restrictions on international travel.
However, the IEA added that while the increase in new Covid cases was expected to slow demand, it was not expected that the already ongoing recovery would completely fail.
Production that exceeds demand
Despite this uncertainty, production is ready to outpace demand from December, driven by increased production from the US and OPEC + countries. According to the IEA, this upward trend will continue until 2022, and the United States, Canada and Brazil are set to use pumps at the highest annual levels ever.
“Saudi Arabia and Russia could also break records if the remaining OPEC + cuts are completely eliminated,” the IEA said. “In that case, global supply will increase by 6.4 mb / d next year compared to the 1.5 mb / d increase in 2021.”
The IEA outlook is slightly inconsistent with OPEC + expectations. The Oil Production Consortium released its own report on Monday and was more optimistic about the recovery in demand next year than the IEA.
OPEC + predicts that Omicron variants will have a mild impact on the oil market, reaching 100 million barrels per day by the third quarter of 2022. We also raised the demand forecast for the first quarter of 2022 by 1.1 million barrels. Per day.
In November, OPEC + increased gross production 500,000 barrels per dayIt was agreed in the early stages of the coronavirus crisis, when it solved the output cut.
In the spring of 2020, the organization agreed to cumulatively reduce oil production by about 10 million barrels per day as oil prices plummeted in the face of a pandemic.
Pessimistic outlook for oil prices
The IEA has also revised its outlook for oil prices downwards.
“Our oil price assumptions (based on the forward curve) are about 15% lower in 2022 than in last month’s report,” the report author said. “”Brent Prices average $ 70.80 / barrel in 2021 and $ 67.60 / barrel in 2022. “
Brent crude futures fell slightly on Tuesday, erasing previous profits trading at around $ 74.27 a barrel at 10 am London time.
US West Texas intermediate crude oil futures were also slightly lower, trading at just over $ 71 a barrel.
IEA says a variant of Omicroncovid that weighs on global demand for oil
Source link IEA says a variant of Omicroncovid that weighs on global demand for oil
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