IEA remarks in its latest monthly report
- Energy crisis has prompted a switch to oil, could boost demand by 500k bpd
- Oil supply has resumed uptrend as OPEC+ unwinds output cuts
- Revises 2021 oil demand forecast upwards by 170k bpd
- Revises 2022 oil demand forecast upwards by 210k bpd
In other words, expect a tighter market going into next year with the global energy crunch likely to keep demand conditions bolstered and supportive of energy prices in general. IEA also adds that:
"Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming. Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery."
