The International Energy Agency (IEA) revised its global oil demand estimates to reflect lower demand for the remainder of 2021 and next year in its monthly oil report on Thursday.
'Global oil demand estimates have been revised lower since last month’s report, in part due to the inclusion of more complete historical annual statistics,' the agency said.
Oil demand for the second half of this year has been lowered by over 500,000 barrels per day (bpd) since last month’s report, the IEA said. Global oil demand is now seen to rise on average by 5.3 million bpd to 96.2 million bpd in 2021.
'Growth for the second half of 2021 has been downgraded more sharply, as new Covid-19 restrictions imposed in several major oil-consuming countries, particularly in Asia, look set to reduce mobility and oil use,' the agency said.
In 2022, demand is expected to reach 99.31 million bpd, 190,000 bpd lower than the number predicted in the agency’s July report.
World oil supply rose by 1.7 million bpd to 96.7 million bpd in July after 'Saudi Arabia ended its extra voluntary production cut and the North Sea recovered strongly after maintenance,' the agency said.
OPEC crude output rose by 720,000 bpd in July to 26.68 million bpd, with Saudi Arabia accounting for three-quarters of the increase. Saudi Arabia delivered 9.46 million bpd, the highest since April 2020.
Additionally, OPEC+ crude supply increased by 720,000 bpd in July to 41.7 million bpd, up 4.3 million bpd year-on-year, after Saudi Arabia ended its voluntary reduction along with the group’s overall May-July increase.
The IEA estimated that non-OPEC+ supply rose to 47.4 million bpd in July, up 960 million bpd month-on-month, 'on the completion of turnarounds in Canada and the North Sea.'
By Zeynep Beyza Kilic