IEA Increases Global Oil Demand Growth Outlook
The International Energy Agency (IEA) has raised its global oil demand growth outlook for full-year 2022 due to easing COVID-19 restrictions despite the surging cases of the omicron variant of the coronavirus.
The IEA increased the demand outlook by 200,000 barrels per day to a growth of 3.3 million barrels per day for the year, its latest report shows.
The agency also expects an increase of 200,000 barrels per day to 5.5 million barrels per day for 2023 amidst a net-zero emission plan. Global prices of crude oil have been making an uptrend, hitting 2014 high.
Oil demand for the first quarter of 2022 is expected to run into a “seasonal decline,” driven by more work-from-home setup and less air travel, following an increase of 1.1 million barrels per day to 99 million barrels per day in the fourth quarter of 2021, the agency added.
Oil supply worldwide could see a “Saudi (Arabia)-driven gain” of 6.2 million barrels per day if the Organization of the Petroleum Exporting Countries and its allies decide to fully unwind their oil production cuts.
The IEA estimates an oil output increase of 4.4 million barrels per day from OPEC+, as the cartel and its allies are known, and 1.8 million barrels per day from non-OPEC countries in 2022.
IEA Increases Global Oil Demand Growth Outlook >>>Read: IEA Forecasts 6% Increase in Global Oil Demand
