The International Energy Agency (IEA) slashed its forecast for global oil demand for the rest of this year due to the spread of the COVID-19 Delta variant.
- New COVID-19 restrictions, particularly in Asia, set to reduce oil usage.
- Recovery in refinery activity slowed in July due to new COVID-19 waves.
- Supply boost, slower demand growth stamps out lingering suggestions of a super-cycle in the oil market.
- The oil market could tilt into surplus if OPEC+ continues to undo cuts, with last month’s deal going a long way to restore market balance.
- Sees global oil demand rising 5.3 million barrels per day (mbpd) in 2021, further 3.2 mbpd in 2022.
The report exerted some pressure on WTI crude oil, which was last seen trading just below the $69.00/barrel mark, down nearly 0.40% for the day.