IEA: Reprieve from oil price rally could be on the horizon due to rising supplies

The International Energy Agency (IEA) said on Tuesday that it left its forecast for oil demand growth largely unchanged at 5.5 million barrels per day (bpd) for 2021 and 3.4 million bpd in 2022, as reported by Reuters.

Additional takeaways

"US oil production will not return to pre-covid rates until the end of 2022."

"Current oil prices provide strong incentive to boost US oil activity even as operators stick to capital discipline."

"US set to account for 60% of 2022 non-OPEC+ oil supply gains, now forecast at 1.9 million bpd."

"Reprieve from oil price rally could be on the horizon due to rising supplies."

"Oil refinery activity picking up after autumn maintenance, demand set to strengthen on eased lockdowns."

"IEA predicts a further global oil production rise of 1.5 mln bpd over November and December."

Market reaction

Crude oil prices largely ignored this report and the barrel of West Texas Intermediate was last seen rising 0.4% on the day at $81.24.