IEA says the Delta virus outbreak has weakened the recovery in oil demand, while OPEC expects an increase in supply.
The International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) said on Thursday that the economic impact of the Delta variant virus and the rebound in oil production means that global oil Expectations that demand exceeds supply are fading.
The Paris-headquartered IEA found in its closely watched monthly market report that the worsening of the epidemic and the revision of historical data mean that its global oil demand outlook has been “significantly lowered”, and this year’s expected increase has been partially adjusted to 2022.
The decline in China’s commodity demand has caused investors’ concerns. The Chinese government last week canceled all major exhibitions and events for the remainder of August. Together with other measures to curb the Delta strain epidemic, it has become a major issue in recent days. Traders who worry about the fragile nature of China’s economic recovery are even more disturbed.
The IEA lowered its forecast for global oil demand growth in 2021 by 100,000 barrels per day, and at the same time raised its forecast for global oil demand growth in 2022 by 200,000 barrels per day. According to the report, global oil demand is still expected to return to a high level before the new crown epidemic in the second half of next year.