Oil: the IEA anticipates a strong rebound in demand
Oil demand is expected to rebound soon according to the IEA (illustrative image).
AFP - PAUL RATJE
Text by: RFI Follow
3 min
The International Energy Agency (IEA) said on Tuesday, September 14 to expect a strong rebound in global oil demand, after three months of contraction this summer, caused by the resurgence of Covid-19 cases in Asia .
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In its monthly oil report, the Paris-based agency estimates that demand for black gold has contracted "
for three consecutive months
" from July to September. "
Global oil demand remains under pressure from the virulent Delta variant of Covid-19 in key consuming regions, particularly in Asia,
" write IEA experts.
After a strong rebound in June, they estimate that demand will have contracted by 310,000 barrels per day each month on average over the three months up to and including September. But "
signs are already emerging on a drop in Covid cases and demand is expected to rebound strongly from 1.6 million barrels per day in October and continue to grow until the end of the year
", however adds the IEA .
On Monday, the Organization of the Petroleum Exporting Countries (OPEC) estimated that global demand for crude should exceed its pre-pandemic level next year, driven by vaccination and economic recovery.
The cartel and its allies within OPEC +, after having restricted their production during the crisis in order to support prices, are gradually pumping a little more crude to supply a market which is recovering.
►
To read also: Oil: OPEC + agrees on a further modest increase in its production
The IEA, which advises developed countries on their energy policies, notes that Hurricane Ida severely limited US production in the Gulf of Mexico, prompting them to tap into oil stocks.
"
The market should come closer to equilibrium from October if OPEC + continues to abandon its production restrictions
," notes the IEA.
But even then, it will not be until early 2022 that the supply will be sufficient to allow stocks to be replenished.
"
The extremely optimistic forecasts, put forward in particular by the International Energy Agency, led people to believe that the post-oil era was imminent.
This is not the case.
We must therefore, on the one hand, invest more in clean alternative sources, but on the other hand, we must continue to research and develop oil reserves.
Because without it, we will run out of oil and we will all pay the price for excess optimism.
Pierre Terzian, director of the review “Pétrostrategy”
Agnieszka Kumor
(
With
AFP)
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