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+.