IEA revises 2021 and 2022 global oil demand forecasts higher

Oil

In its latest Oil Market Report the International Energy Agency (IEA) raised its global oil demand forecasts for both 2021 and 2022 by 200K b/d compared to its previous report, stating that the impact on economic activity and oil demand from the Omicron Covid-19 variant remains relatively subdued. Both forecasts were previously revised down by around 100K b/d in December’s report as Covid-19 infections began to surge, however the impact of this has been less severe than expected. Global demand is now set to have averaged 96.38M b/d across 2021, and is forecast to rise by 3.33M b/d y-o-y to 99.71M b/d in 2022, surpassing pre-pandemic levels.