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The International Energy Agency (IEA) raised its forecast for global oil demand levels in the current year and 2022, noting that a shortage of natural gas, LNG and coal could boost the demand for oil.
In its monthly report issued today, Oct. 14, the agency said the global oil demand is now forecast to rise by 5.5 million barrels per day (bpd) in 2021 to 96.3 million bpd, compared to earlier estimates of 96.1 million bpd.
The Paris-based agency expects global oil demand to grow by 3.3 million bpd to 99.6 million bpd in 2022, which is higher than the previous forecast of 99.4 million bpd.
The increased reliance on oil, instead of natural gas, may contribute to adding 500,000 bpd to consumption until the end of March.
IEA also warned that higher energy prices are adding to inflationary pressures that, along with power outages, could reduce industrial activity and slow economic recovery.
The global supply of crude decreased by about 260,000 bpd in September at 96 million bpd due to the repercussions of Hurricane Ida in the US, as well as maintenance work in Canada and Norway.
The agency expects OPEC+ to pump 700,000 bpd less than the estimated demand for crude in Q4 2021.
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