© Reuters. FILE PHOTO: A gasoline pump is seen hanging from the ceiling at a petroleum station in Seoul June 27, 2011. REUTERS/Jo Yong-Hak
By Noah Browning
LONDON (Reuters) – Demand for oil will exceed the output of prime producers attributable to progress in vaccinating the world in opposition to COVID-19, the Worldwide Vitality Company (IEA) stated on Wednesday.
“The anticipated provide progress by way of the remainder of this yr comes nowhere near matching our forecast for considerably stronger demand past the second quarter,” the IEA stated in its month-to-month report, citing elevated pumping from OPEC+ international locations.
Output from the Group of the Petroleum Exporting Nations (OPEC) and allies together with Russia, the so-called OPEC+ group of producers, already lags demand for its oil by 150,000 barrels per day (bpd) and that’s anticipated to widen to a 2.5 million bpd shortfall by yr’s finish, the Paris-based watchdog stated.
New waves of infections in Brazil and Thailand and even India – the world’s third-largest shopper struggling record-breaking instances – weren’t sufficient to derail the development however may proceed to have an effect on the market, it added.
“India’s COVID disaster is a reminder that the outlook for oil demand is mired in uncertainty. Till the pandemic is introduced beneath management, market volatility is prone to persist.”
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