Omicron won't reverse oil demand recovery, IEA says
The International Energy Agency said that rising COVID cases are likely to "temporarily slow, but not upend" the global oil demand recovery.
Driving the news: The agency's closely watched monthly analysis this morning slightly cut demand growth estimates for this year and 2022, but overall said:
- "New containment measures put in place to halt the spread of the virus are likely to have a more muted impact on the economy versus previous COVID waves, not least because of widespread vaccination campaigns."
By the numbers: The IEA now sees global demand this year at 5.4 million barrels per day (mbd) above 2020's COVID-battered levels, and rising another 3.3 mbd next year to reach pre-pandemic levels.
- Both tallies are 100,000 barrels per day less than prior projections.
The big picture: Overall, IEA continues to see a softening supply-demand balance heading into next year as production growth comes from the U.S., Canada, Brazil and OPEC+.