IEA lowers global oil demand forecasts

Oil

In its latest Oil Market Report, the International Energy Agency (IEA) has revised its global oil demand forecast for 4Q21 and 1Q22 down by 300K b/d to 98.6M b/d and by 600K b/d to 97.9M b/d respectively compared to the previous report, citing a surge in new COVID-19 infections for this slowed consumption. The IEA expects that the new restriction measures implemented in order to curb the spread of the virus will have an immediate impact on air travel, and as such have lowered their forecast for 2021 down by 90K b/d to 96.2M b/d. Oil demand in 2022 is now set to rise by 3.3M b/d y-o-y to 99.5M b/d, however this has also been lowered by 120K b/d compared to the previous report.