WTI stays above 200 DMA after IEA’s warning
In its latest oil market report, the International Energy Agency (IEA) warned that “global oil inventories remain critically low, with recent builds concentrated in China.”
Additional takeaways
Strong policy intervention needed on energy use or else world economic recovery at risk.
Saudi and UAE combined spare capacity could fall to just 2.2 mln bpd in august with full phase-out of OPEC+ cuts.
Calls Russian profits "untenable", says talks ongoing to identify solid market mechanism for price cap on Russia’s oil.
Russia’s surprisingly strong performance has pushed up IEA oil supply forecast.
Russia continues to earn more by exporting less oil, funding its military operations.
High fuel prices dent oil consumption in OECD but demand has rebounded in developing economies.
Trimmed oil demand outlook for 2022 by 200,000 barrels per day (bpd) while predicting a rise of 1.7 mln bpd to 99.2 mln bpd.
Demand in 2023 to rise by 2.1 mln bpd to 101.3 mln bpd, led by strong growth in non-OECD countries.
Lower oil demand growth in advanced economies, resilient Russian supply has reduced market tightness.
Higher prices and deteriorating economic environment have started to take toll on oil demand.