Commodities Buzz: IEA Raises Global Oil Demand Outlook

11 Aug 2022 , 04:36 PM

The International Energy Agency (IEA), in its monthly report published on Thursday, said that it expects the global oil demand to rise by 2.1 million barrels per day in 2023 to surpass the pre-Covid levels at 101.8 million bps. Soaring oil use for power generation and gas-to-oil switching are boosting demand, the report stated. IEA has raised estimates for 2022 global demand growth by 380 kb/d, to 2.1 mb/d. World oil demand is now forecast at 99.7 mb/d in 2022 and 101.8 mb/d in 2023. The outlook for world oil supply has been revised upward, with more limited declines in Russian supply than previously forecast, IEA noted. Rising oil supplies and escalating concerns over the deteriorating economic outlook have knocked around $30/bbl off prices from a peak in June. At the same time, natural gas and electricity prices have soared to new records, incentivising gas-to-oil switching in some countries. Meanwhile, builds in global inventories are now projected at around 900 kb/d during the rest of this year and 500 kb/d over the first half of 2023, the report said. Powered by Commodity Insights