IEA warns of potentially volatile year for oil market

The oil market could face another volatile year but demand is surging higher as the sector has weathered the impact of the Omicron coronavirus variant, the International Energy Agency said Wednesday.

The IEA revised its demand estimates, saying it increased by 5.5 million barrels per day in 2021 and would grow by 3.3 million bpd in 2022 — 200,000 bpd higher than its previous estimate.

This will take total demand above pre-Covid levels in 2022, at 99.7 million barrels per day.

While Covid cases have soared, “measures taken by governments to contain the virus are less severe than during earlier waves and their impact on economic activity and oil demand remain relatively subdued”, the IEA said.