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IEA revises oil demand outlook down by around 100,000 bpd for 2022


On Tuesday, April 27, 20,21, a tanker truck passes oil well pump-jacks owned by Chevron Corp. at San Ardo in California.

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The International Energy Agency announced Tuesday that oil demand is expected to fall below expectations next year. It revised its outlook for the rest of the year by 100,000 barrels per hour and for 2022.

According to the IEA, global oil consumption is now forecast to grow by 5.4million barrels per hour in 2021 and 3.3million barrels each day in 2022. This will allow for the IEA to achieve pre-pandemic level of 99.5 million barrels a day worldwide.

Reports indicate that the surge in Covid-19-related cases will have a significant impact on recovery. This could lead to jet fuel being severely affected. The report’s authors pointed out that international travel restrictions have been reformed by the introduction of the new variant of the micron omicron.

The IEA said that, while new Covid case growth was anticipated to slow down demand, recovery already in progress was not likely to be slowed.

Demand to exceed production