IEA sees oil demand rebounding 1.6 million bpd in October

RIYADH: The global oil demand declined for the third consecutive month due to a resurgence of the Covid-19 cases in Asia, Arab News reported.

Adjusted estimates of the global oil demand in the third quarter of 2021 by a reduction of about 200 kb/d since last month, the monthly report of IEA issued on Tuesday showed.

The IEA saw a demand rebound of 1.6 million barrels per day in October and continued growth until the end of the year.

Overall, the agency lowered its 2021 global oil demand growth forecast by 105,000 bpd to 5.2 million bpd but raised its 2022 figure by 85,000 bpd to 3.2 million bpd.

These forecasts are below those of the Organization of the Petroleum Exporting Countries, which expects demand to grow by about 5.96 million bpd this year and 4.15 million bpd next year.

Oil prices turned negative on Tuesday after new data from the US Labor Department showed inflation cooling and the impact of tropical storm Nicholas on the energy sector began to improve.

Brent crude fell 38 cents, or 0.5 per cent, at $73.13 a barrel by 1:10 p.m. EDT (1719 GMT) after hitting a session high of $74.28. US West Texas Intermediate crude fell 41 cents, or 0.6 per cent, to $70.04 after touching a high of $71.22.

The US consumer price index edged up 0.5 per cent from last year and 0.3 per cent from July, indicating slower growth than in prior months.

While Nicholas is the second major storm to threaten the US Gulf region in recent weeks, bringing heavy rains to the Deep South and causing power outages, most Texas refineries are operating normally and the number of people in Texas without electricity is falling.

The Colonial pipeline, the nation’s largest fuel pipeline, partially resumed operations after shutting earlier on Tuesday due to a power outage.

Royal Dutch Shell on Tuesday shut production at an offshore oil platform due to heavy winds from Nicholas. Vessel traffic at some energy hubs was halted due to difficult weather conditions.

Iraq set on Tuesday the October price of its Basrah Light crude to Asian customers at $0.85 a barrel above the average of the Oman and Dubai benchmark crudes, down $1.40 from the previous month, according to a pricing document from the state-oil marketer.

Protesters blocked an oil tanker from loading at the Libyan terminal of Es Sider on Tuesday, and authorities are working with the Petroleum Facilities Guards to end the blockage, the National Oil Corp. media office and an engineer at the port, said.

Details on China’s plans to sell crude from its strategic reserves dampened price gains. China’s state reserves administration said it would auction about 7.4 million barrels of crude on Sept. 24, the first batch of sales in a rare release of strategic inventories.

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