IEA cuts 2022 global oil demand outlook

Oil barrels

The International Energy Agency (IEA) revised down its outlook for global oil demand this year, after China reimposed lockdown measures to curb the spread of COVID-19.

In its monthly report, the Paris-based watchdog cut its forecast for global fuel consumption in 2022 by 260,000 barrels per day (bpd), though global demand is still trending higher this year.

During the current year, global oil consumption is poised to grow by 1.9 million bpd to an average of 99.4 million bpd, the IEA said.

Oil prices, according to the agency, are now around levels before the Russia-Ukraine crisis in late February, albeit still alarmingly high and pose a serious threat to the global economic outlook.

The IEA expects the full impact of sanctions on Russia and buyer reluctance to purchase Russian crude to begin from May onwards, when nearly 3 million bpd of Russian oil supplies could be cut off.