- The IEA increased its forecasts for global crude demand growth in 2022 by 380 MBbl/d to 2.1 MMBbl/d from 1.7 MMBbl/d in its August monthly report
- "Natural gas and electricity prices have soared to new records, incentivizing gas-to-oil switching in some countries," said the agency
- Global oil demand is now anticipated to reach 99.7 MMBbl/d in 2022 from 99.2 MMBbl/d earlier this year
- In addition, the group projects an increase in global stockpiles of 900 MBbl/d through year's end, citing numerous emergency SPR releases along with more resilient Russian crude production
- An EU import embargo will cause Russia's oil production to decline by about 20% by the beginning of 2023
- The agency added that if Russia reduces its refining output, gradual monthly declines will begin as early as this month and accelerate when the embargo takes effect
- Although output has recently experienced a robust rebound, it anticipates that close to 2 MMBbl/d will be shut in by the beginning of 2023
- OPEC cut its forecast for oil demand growth in 2022, citing expectations for a resurgence of COVID-19 restrictions and continued geopolitical concerns
- The bloc cut its estimate of 2022 demand growth to 3.1 MMBbl/d from a previous forecast of 3.4 MMBbl/d
- They left the forecast for world oil demand growth in 2023 unchanged at 2.7 MMBbl/d, with total oil demand averaging 102.7 MMBbl/d
- U.S. average retail gasoline prices fell below $4/Gal to the lowest level since early March, according to data from AAA (BBG)
- Prices continued to decline, dropping to $3.99/Gal, according to data released on Thursday
- Meanwhile, nationwide gasoline demand has been falling, and oil prices have fallen by nearly $10/bbl since June