(IEA) The International Energy Agency has raised its demand forecast for oil in 2022 by 200,000 barrels a day to 3.3 million bpd, citing growing Covid-19 vaccinations and the low threat from Omicron.
IEA says although Covid-19 cases are growing globally, measures initiated by governments to tame the virus are less severe to lead to subdued oil demand.
The group expects limited restrictions in the second half of the year as the population gains immunity through vaccination or infection.
IEA further states that the soaring gas prices could support oil demand which is seen as a cheaper alternative.
IEA projects that demand for oil this year will hit 99.7 million bpd, which is 200,000 bpd more than the levels in 2019. The group still expects oil supply in 2022 to exceed demand by a narrow margin.
The projections by IEA come amid a tight supply market, with the OPEC+ already missing their production targets in December by 790,000 bpd.
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