Thursday 12 August 2021

IEA Cuts Oil Demand Outlook on Virus, Sees New Surplus in 2022 - Bloomberg

IEA Cuts Oil Demand Outlook on Virus, Sees New Surplus in 2022 - Bloomberg

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.

It’s a marked 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.

The analysis also jars with Wednesday’s call from the U.S. -- the IEA’s most influential member -- for the Organization of Petroleum Exporting Countries and its allies to ramp production up faster.

“The immediate boost from OPEC+ is colliding with slower demand growth and higher output from outside the alliance, stamping out lingering suggestions of a near-term supply crunch or super cycle,” the IEA said in its monthly report.

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