The IEA revised its price outlook lower:

• “Our oil price assumption (based on the forward curve) is roughly 15% lower for 2022 than in last month’s report,”
• “Brent prices average $70.80/bbl in 2021 and $67.60/bbl in 2022.”

In brief the report highlighted:

Global oil demand expected to rise by 5.4 million barrels per day in 2021 and 3.3 million barrels per day in 2022 to hit pre-pandemic levels of 99.5 million barrels per day globally.

• that’s a revision down its outlook by 100,000 barrels per day for both the remainder of this year and 2022.
• The rise in new Covid cases was expected to slow demand,but not completely derail it.

Production is poised to outpace demand from December,

• upward trend would extend into 2022, the IEA citing the U.S., Canada and Brazil set to pump at their highest annual levels ever
• “Saudi Arabia and Russia could also hit records if remaining OPEC+ cuts are fully unwound,” the IEA said. “In that case, global supply would soar by 6.4 mb/d next year compared with a 1.5 mb/d rise in 2021.”

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