IEA Lowers Oil Demand Forecast... Global Oil Market Supply-Demand Balance Expected

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The International Energy Agency (IEA) has slightly lowered its global oil demand forecast considering China's COVID-19 lockdowns.

On the 13th (local time), the IEA revised down its global oil consumption forecast for this year to an average of 99.4 million barrels per day, a reduction of 260,000 barrels from the previous estimate, according to AFP and Bloomberg News.

Russian crude oil production is expected to decrease by 1.5 million barrels per day this month, a consequence of the boycott by various countries following the invasion of Ukraine. The decline is expected to double in May.

However, the IEA forecasts that the global oil market supply and demand will balance out. This is due to a slowdown in demand, increased production by the OPEC+ group, and large releases from U.S. reserves.

The IEA stated, "Oil prices have already returned to levels prior to Russia's invasion of Ukraine." However, it added, "Prices remain high and pose a serious threat to the global economy," and "Although the oil market appears balanced, the outlook is filled with uncertainties."

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