Oil prices decline after the publication of the IEA report

World oil prices accelerated their decline on Tuesday, dropping to the level of $91.57 per barrel from the area above $96. 

Pressure on the market was exerted by the publication of the monthly report of the International Energy Agency (IEA), according to which the organization raised the forecast for oil demand growth in 2022 by 180 thousand barrels per day (up to 99.78 million b/d). At the same time, the forecast for 2023 was reduced by 40 thousand b/s.

The demand estimate in 2021 was left unchanged at 97.7 million b/s. The agency notes that the slowdown in global demand next year is due to the growth of economic problems, including fears of recession in the world's largest economies.

In addition, the IEA maintained its forecast regarding the growth rate of oil production in the world at the end of the year: the agency still expects an increase of 4.6 million barrels per day (up to 99.9 million barrels). In 2023, the IEA expects an increase in production by 0.74 million barrels, to 100.7 million barrels per day.

An additional influence on the dynamics of oil prices was exerted by the OPEC report, as well as the anti-covid policy in China. Thus, OPEC lowered its forecast for the growth of global oil demand by 0.1 million barrels per day (up to 2.5 million) by the end of this year, and also by 0.1 million barrels (up to 2.2 million) for the next year.