Paris, Oct 14 (EFE) .- World oil demand will reach 99.5 million barrels per day in 2022, above pre-COVID-19 levels, driven by the increase in the price of gas and coal, which will have consequences on prices, the International Energy Agency (IEA) warned on Thursday.
The shortage of supply and the high price of natural gas and coal “is causing a massive diversion” towards oil and its derivatives for electricity generation “and industrial uses, the IEA points out in its monthly report on the oil market.
This sharp increase in demand has accelerated since last September, driven by the global economic recovery after the pandemic and purchases by operators fleeing high gas and coal prices.
Strong demand, coupled with the slow recovery of OPEC + production, along with the effects of Hurricane Ida on production in the US and maintenance shutdowns in other producers such as Canada and Norway, have led to the highest oil prices in seven years earlier this month.
The IEA expects a “strong” increase in production from this month October, driven by the recovery in the US after Ida, the end of these maintenance operations in other countries and the rebound in OPEC +, even if it is Alliance will continue to be below its usual levels of extraction.
The current OPEC + production pact plans to increase its supply by 400,000 barrels per month until September 2022, and the report released yesterday by the organization suggests that for now it will maintain that commitment.
With those figures, the IEA today calculates that global crude production will reach its pre-pandemic levels during the first half of 2022, barring unforeseen events.
The agency document notes that the OPEC + production increase “has not changed market expectations, so current supply and demand forecasts will mean a short-term reduction in inventories, at least until the end of the year.
This will mean “a strong tonic for prices, which in turn will further stress the oil market,” he adds.
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