IEA reversed its outlook on Oil demand on Virus, sees outlook for second half of 2021 cut by 550,000 barrels a day Stockpiles to rebound in 2022 if OPEC+ reverses output cuts
IEA reversed its outlook on Oil demand on Virus, sees outlook for second half of 2021 cut by 550,000 barrels a day Stockpiles to rebound in 2022 if OPEC+ reverses output cuts
The International Energy Agency cut forecasts for global oil demand “sharply” for the rest of this year as the resurgent pandemic hits major consumers, and predicted a new surplus in 2022.
“Growth for the second half of 2021 has been downgraded more sharply, as new COVID-19 restrictions imposed in several major oil consuming countries, particularly in Asia, look set to reduce mobility and oil use,” the Paris-based IEA said.
“We now estimate that demand fell in July as the rapid spread of the COVID-19 Delta variant undermined deliveries in China, Indonesia and other parts of Asia.” e second half than it had estimated last month, noting some changes were due to revisions in data.
It’s a big reversal for the Paris-based agency, which just a month ago was urging the OPEC+ alliance to open the taps or risk a damaging spike in prices. The oil cartel heeded calls to hike supply, which is now arriving just as consumption slackens with the delta threats.
Forecasts from the IEA
- The IEA put the demand slump last month at 120,000 barrels per day (bpd) and predicted growth would be half a million bpd lower
- Global oil demand is now seen rising 5.3 mb/d on average, to 96.2 mb/d in 2021, and by further 3.2 mb/d in 2022”
- On average, demand will not recover to pre-pandemic, but it will in Q4 2022
Source: IEA
From The TradersCommunity News Desk.