Gas price relief on the horizon as global oil supply recovers, says IEA

According to the latest market report from the International Energy Agency, global oil supplies increased by 1.4 million barrels per day in October, with the United States accounting for half of that increase as production from the Gulf of Mexico fell. recovered from the damage caused by Hurricane gone in August.

The Paris-based agency said it expected a further boost of 1.5 million barrels per day during November and December, and that the United States forecasts that it will provide more than that increase than any other country.

“The world oil market remains tight from all points of view, but relief from the rebound in prices could be on the horizon,” he said.

US Crude and Brent Prices Trade Near Six-Week Highs at $ 80.15 and $ 81.62 a barrel. That leaves drivers in California paying a record $ 4.68. per gallon of gasoline, according to AAA. Europe has not escaped either. Prices hit all-time highs in the UK last month.
The IEA said it expected production to increase in the next two months even though the OPEC + group of oil-producing countries rejected the appeals. from US President Joe Biden to increase production beyond a planned monthly increase of 400,000 barrels per day.

The agency said it had raised its US production forecast by 300,000 barrels per day for the fourth quarter and by 200,000 barrels per day on average in 2022, as high prices encourage higher production.

“That increase will go some way to meeting growing demand, still rebounding from the Covid crash in 2020,” the report said, adding that the refinery’s production also increased again, following maintenance through the fall.

The agency raised its global gasoline demand forecast for the final quarter of 2021 at 250,000 barrels per day after seeing end-user demand “on track to strengthen even further” for the rest of the year, as more countries open up to travel International, people become more mobile and Covid-19 vaccination campaigns resume.

“Recent data shows that personal car use rose above pre-Covid levels in many places, with interim data for the United States pointing to very strong gasoline in September and October,” he said in the report.

Despite high prices, gasoline demand in Europe also remained high, while consumption in China and India was more than 10% above 2019 levels, the IEA said.

“This comes despite record levels of EV sales in September and probably October as well.”

The agency kept its overall oil demand growth forecast of 5.5 million barrels per day for 2021 and 3.4 million barrels per day in 2022 unchanged from the September report. He said that the new Covid-19 outbreaks in Europe, weak industrial production and the prevailing high oil prices could affect any increase in demand.

– Julia Horowitz contributed to this story.

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