Wednesday, 19 January 2022

Oil market headed for surplus as Omicron impact muted -IEA | Reuters

Oil market headed for surplus as Omicron impact muted -IEA | Reuters

Oil supply will soon overtake demand as some producers are set to pump at or above all-time highs, the International Energy Agency (IEA) said on Wednesday, while demand holds up despite the spread of the Omicron coronavirus variant.

"This time around, the surge is having a more muted impact on oil use," the Paris-based IEA said in its monthly oil report.

"While the steady rise in supply could see a significant surplus materialise in 1Q22 and going forward, available data suggest that 2022 is starting off with global oil inventories well below pre-pandemic levels," it said.

The United States, Canada and Brazil are set to pump at all-time highs for the year while Saudi Arabia and Russia could also break their output records.

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