LONDON, Oct 14 (Reuters) – A global power crunch is anticipated to spice up oil demand by half one million barrels per day (bpd) and could stoke inflation and gradual the world’s restoration from the COVID-19 pandemic, the International Energy Agency (IEA) stated on Thursday.
“Record coal and gas prices as well as rolling blackouts are prompting the power sector and energy-intensive industries to turn to oil to keep the lights on and operations humming,” the Paris-based company stated in its month-to-month oil report.
“Higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery.”
As a end result, global oil demand subsequent 12 months is now projected to get better to pre-pandemic ranges, it added.
The IEA estimated that producer GROUP OPEC+ is about to pump 700,000 bpd under the estimated demand for its crude within the fourth quarter of this 12 months, that means demand will outpace provide at the least till the top of 2021.
An upsurge in demand within the Past quarter led to the largest draw on oil merchandise shares in eight years, it stated, whereas storage ranges in OECD nations have been at their lowest ranges since early 2015.
Editing by David Goodman