International Energy Agency cuts forecast for global oil demand in 2022

Oil barrels

Oil demand is might be lower, due to a new surge in COVID-19 cases, and emergence of the new omicron variant, the International Energy Agency (IEA) said today, Dec. 14 in its monthly report.

The Paris-based agency added that the new lockdown measures to curb the virus outbreak are likely to have less impact on economy, compared to the previous waves.

“The surge in new COVID-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is underway,” the IEA noted.

The agency expected an increase in global crude supply to 6.4 million barrels per day (bpd) in 2022, compared to a rise of nearly 1.5 million bpd this year,

It also revised down its outlook by 100,000 bpd for both the remainder of this year and 2022, with jet fuel being hit hard, the report said.

Moreover, the IEA expected oil supply to exceed demand levels as of the beginning of this month.