(Bloomberg) – As the global energy agency’s epidemic hits major consumers, new profits in 2022 are expected to fall sharply this year for global oil demand.
This is a reversal of the Paris-Agency’s signal a month ago that OPEC + should open its pipelines or risk damage to prices. The fuel carton has heard the call, and now it is coming as supply is declining.
The analysis also called on the United States – the most influential member of the IEA – on Wednesday to call on oil exporters and their partners to grow faster.
The IAAA said in its monthly report:
Oil prices fell 6% this month as renewed locks were triggered in China and other key Asian consumers where the disputed Delta difference is being reduced. In early July, Brent’s futures traded near $ 78, a two-year high, near $ 78.
Recent protests have lost momentum, with fears that an increase in Davita-19 cases could jeopardize recovery as barrels reach the market.
The 23-nation OPEC + coalition, led by Saudi Arabia and Russia, has agreed on a road map to restore the remaining oil supplies that were shut down during the outbreak. But the extra barrels start pouring out unexpectedly.
Demand for global oil fell slightly to 3.8 million barrels per hour last month. In the second half of the year, the agency reduced consumption estimates by 550,000 barrels per day.
IEA projects will continue to reach an average of 98.9 million barrels a day in the last three months of this year.
The recovery so far has already had unwanted side effects.
As U.S. drivers struggle with 3 gallons of gasoline and fear inflation, bidding authorities are urging OPEC + to speed up supply. OPEC plans “at a critical juncture in global recovery,” National Security Adviser Jack Sullivan said Wednesday.
As the US and other manufacturers recover from the investment epidemic, the IEA has significantly strengthened its forecast for off-OPEC supplies in 2022. The forecast for non-OPEC production increased by an average of 1.1 million barrels a day the following year.
As a result, OPEC is producing the required amount of crude by 2022, the report said. With 26.7 million barrels a day in July, plans to restore more production could push the market back to where it was.
For its part, the agency said: “If OPEC + continues to decline in 2022 and manufacturers do not participate in the high price response, the rate could return to profit.”
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