- Oil hit a seven-year high, and the IEA turned bullish on its outlook
- The International Energy Agency said the market looked tighter than previously thought as demand proving resilient to Omicron (Bloomberg)
- Oil futures also received a boost after an explosion on Tuesday knocked out a key crude pipeline running from Iraq to Turkey
- In the IEA’s latest monthly report, the agency said global inventories have plunged over the last 12 months
- Stocks are down by more than a billion barrels since the peak of May 2020 and are well below pre-pandemic levels, the report said
- The IEA, which advises most major economies, raised projections for global oil demand by 200 MBbl/d for both 2021 and 2022
- Consumption will increase by 5.5 MMBbl/d and 3.3 MMBbl/d, respectively
- OPEC+’s spare capacity could diminish to 3 MMBbl/d, for about 5 MMBbl/d currently, the IEA said. This could leave the market vulnerable to price volatility, even as output grows in the U.S., Canada, and Brazil, the agency said