(IEA) The International Energy Agency says oil markets are still tight, warning that OPEC+ members produced 900,000 barrels per day in January, below target.
The oil organization raised the demand forecast for 2022 by 800,000 bpd. It projects demand to expand by 3.2 million bpd this year to a record 100.6 million bpd.
IEA says that the United Arab Emirates and Saudi Arabia could still calm the volatile markets if they produced more oil to account for the shortfall in OPEC+ output.
Ongoing talks between the US and Iran over the nuclear project are also expected to ease tightness in oil markets. Still, Warren Patterson, ING’s head of commodities research, says the high inflation in the US weighs on commodities markets, including oil.
IEA forecasts of a higher oil demand this year resonates with OPEC+, which expects it to rise steeply due to strong post-pandemic recovery.
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