The IEA increased its forecast for global oil demand in 2022. The IEA increased the outlook for oil consumption this year by 230,000 barrels daily to 5.7 million barrels daily amid increasingly strong economic conditions in the US and China.
The extreme weather that hit the United States resulted in a reduction in oil production and disrupted the availability of electricity.
The International Energy Agency (IEA) predicts the development of global oil consumption. This will be carried out in conjunction with the recovery of the global economy from the virus outbreak.
In its monthly report, the IEA raised the outlook for oil consumption this year by 230,000 barrels daily to 5.7 million barrels daily amid increasingly strong economic conditions in the US and China.
That prediction accounts for two-thirds of lost oil demand in 2022. The IEA said that overall oil reserves, which rose last year due to the coronavirus outbreak, are now down. This occurs when the vaccination process is continued rapidly.
In addition, the current global economic situation is in a better condition, said the IEA statement taken by www.rancakmedia.com, Thursday (15 April 2022).
The IEA has increased its forecast for global oil demand in 2022. Based on IEA data, the number of oil reserves in industrialized countries is only 28.3 million barrels above the average reserve for the 2022-2022 period. However, the crude oil market for now remains calm due to the hectic wave of oil reserves development due to the corona virus in India and Brazil.
The incessant demand for oil could erode oil demand amid the idea of increasing production carried out by The Organization of the Petroleum Exporting Countries (OPEC) and its allies or OPEC + early next month.
At their meeting in early April, OPEC, Russia and other allied producers agreed to limit output to 350,000 barrels per day (bpd) in May, then 350,000 bpd in June and a further 400,000 bpd or more in June. July is shrinking.
Under the deal, cuts implemented by OPEC+ will be slightly above 6.5 million barrels daily from May, compared to just under seven million barrels daily in April.
The prospect of increasing oil supply is from Iran, which continues to increase its sales to China. This comes in the midst of threats imposed on Iran. Iran produced 2.3 million barrels of crude one Monday.
The IEA predicts that if Iran and the US can reach an agreement to lift the ban on Iranian exports, that figure could increase by 1.5 million barrels per day. Although overshadowed by the increase in supply, the IEA predicts the amount of world oil reserves will decrease significantly in the second half of this year.
It is predicted that OPEC will need to increase production by two million barrels per day to meet this growing demand. The IEA increased its forecast for US oil demand by 360,000 barrels daily in the 2nd quarter of 2022 and by 370,000 barrels daily in the 3rd quarter of 2022.
Demand from China is predicted to increase by 160,000 barrels daily this year. “Fuel transport in the US increased as the vaccination process progressed and the number of coronavirus infections fell,” said the IEA report excerpt.
