Oil increases as IEA increases demand forecasts



Oil prices in international markets increased by more than $2 on Thursday. The rise was observed as the oil demand growth forecast was raised by International Energy Agency for this year. The oil demand growth forecast is also dependent on increasing natural gas prices. The more the prices of a natural gas increase, the more people will switch to oil.

“The prices of natural gas and electricity have skyrocketed towards new files, encouraging the switching to oil from gas in certain countries,” said the Paris-based agency in its monthly oil report. It increased its prospects for the demand of 2022 by 380,000 barrels per day (BPD).

On the contrary, OPEC reduced its prognosis of 2022 for growth in world oil demand, citing the impact of Russia in Russia of Ukraine, high inflation, and efforts to contain the pandemic.

OPEC hopes that 2022 oil demands will rise by 3.1 million BPD, down 260,000 BPD from the previous estimate. OPEC Still seeing the overall global oil demand rate that is higher than IEA for 2022.

Prices were also encouraged because the US dollar extended the loss against major currencies after the report showed that US inflation was not as hot as anticipated in July, encouraging traders to turn back the expectations of interest rates by the Federal Reserve.

An increase in US oil inventories last week and the resumption of raw flows in a pipeline that provides pricing gains limited by central Europe.

US crude oil shares rose 5.5 million barrels in the last week, said the U.S. Energy Information Administration, more than the expected increase of 73,000 barrels.

The gasoline product supplied increased to 9.1 million barrels per day, although that figure shows that the demand decreased 6% in the last four weeks from the previous year.

Meanwhile, physical prices of oil worldwide have begun to sink, reflecting the ease of concerns about supply interruptions led by Russia and the greatest concerns about a possible global economic slowdown. Oil Increases as IEA Increases 2022 Demand Forecasts.