Global energy shortages are expected to boost demand for oil by half a million barrels a day, according to the World Energy Agency (IEA).
Global energy shortages are expected to boost demand for oil by half a million barrels a day, according to the World Energy Agency (IEA), while warning of a risk that shortages could push inflation further.
“Record prices for coal and gas as well as general power outages are turning the energy industry and energy-intensive industries to oil in order to continue operating,” the agency said in its monthly market report.
“Higher energy prices are also boosting inflationary pressures.
“This, together with extended power outages, could lead to a decline in industrial activity and a slowdown in economic recovery.”
As a result, global oil demand next year is expected to return to pre-pandemic levels, according to the agency.
In this context, it revised upwards its demand forecast for 2021 and 2022, by 170,000 barrels per day and 210,000 barrels per day respectively.
At the same time, he noted that the huge increase in demand in the last quarter has led to the largest decline in inventories in the last eight years, with the volumes stored in the OECD countries being at the lowest level since the beginning of 2015.
Meanwhile, the IEA estimates that OPEC + production will remain around 700,000 barrels per day below the estimated demand for its oil in the fourth quarter, which means that demand will continue to exceed supply at least until the end of 2021.