IEA remarks in its last monthly report
- The energy crisis has caused a switch to oil and could boost demand by 500,000 bpd
- Oil supply resumed its uptrend as OPEC + rolls back production cuts
- Revises upward its oil demand forecast for 2021 by 170,000 bpd
- Upgrades oil demand forecast for 2022 by 210,000 bpd
In other words, expect a tighter market next year with the global energy crisis likely to keep demand conditions tighter and favorable for energy prices in general. The IEA also adds that:
“Record-breaking coal and gas prices along with blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations buzzing. Rising energy prices are also adding to inflationary pressures which, together with the blackouts, could lead to lower industrial activity and slower economic recovery. “
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