In its monthly oil market report published Wednesday, the International Energy Agency (IEA) that a steady rise in oil supply could see a significant surplus materialize in Q1 2022 and going forward.

Additional takeaways

OECD stocks were down 354 mln barrels on a year ago and at lowest level in seven years.

OECD industry stocks declined by 6.1 mln barrels in November.

Oil output from OPEC+ could rise this year by 4.4 mln bpd.

World oil supply in 2022 has potential for Saudi-driven gain of 6.2 mln bpd if OPEC+ fully unwinds cuts.

Oil demand set for seasonal decline in Q1 2022, exacerbated by more teleworking and less air travel.

Despite the omicron wave, oil demand rose in Q4 2021 by 1.1 mln bpd to 99 mln bpd.

Global oil demand to rise by 5.5 mln bpd in 2021 and by 3.3 mln bpd in 2022.

Global demand estimates by 200,000 bpd for 2021 and 2022 due to softer covid restrictions.

Mobility indicators remain robust and oil demand has been stronger than expected in recent months.

Market reaction

WTI picks up fresh bids on the IEA report, rebounding from daily lows of $84.99.

As of writing, the US oil is trading at $85.48, adding 0.08% on the day.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD: There could be more to come from the bulls on a break of 0.6900

AUD/USD: There could be more to come from the bulls on a break of 0.6900

AUD/USD bears are in control, for now, and target a break of 0.6900. The bulls could be lurking not far below. The pair continues to play the ranges but the bias stays with the upside longer-term. 

AUD/USD News

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD bulls step in and the price stablises as US dollar bid stalls

EUR/USD is trading around 1.0520 in early Asia following a choppy Tuesday on the back of a firmer US dollar, China relaxing its rigid COVID protocols coupled with disappointing US consumer sentiment data and central bank rhetoric. 

EUR/USD News

Gold aims to recapture weekly lows ahead of Fed Powell and US PCE

Gold aims to recapture weekly lows ahead of Fed Powell and US PCE

Gold price is auctioning around a two-day low at $1,818.64 and is expected to slip further to near the weekly low at $1,816.98. The precious metal has failed to capitalize on the event of banning the imports of gold from Russia, which generates the second-highest revenue for Moscow after oil and gas. 

Gold News

Summertime bull-run a multi-year bear market?

Summertime bull-run a multi-year bear market?

The cryptocurrency market is in a historical pivotal moment. One good trade could replenish all losses, while one bad trade could be catastrophic.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures