The International Energy Agency expected today, Friday, that the oil producers in the “OPEC +” alliance will need to increase their production in order to meet the demand that is heading to recover to pre-pandemic levels by the end of 2022.
The Paris-based agency said that “OPEC +” needs to open the taps in order for global markets to remain adequately supplied,” adding that the rising demand and short-term policies of countries are in contrast to the agency’s call to end new financing for oil, gas and coal, in a report on climate released last month.
The agency said in its monthly oil report that there is scope in 2022 for members of the “OPEC +” group, led by Saudi Arabia and Russia, to increase crude supplies by 1.4 million barrels per day above their target for the period between July 2021 and March 2022.
Today, Friday, oil prices approached a two-year high of about $73, and are heading towards achieving gains for the third week, supported by optimism about the recovery in demand.
The agency pointed out that meeting the recovered demand is “not likely to be a problem”, expecting that “OPEC +” will still have an actual spare capacity of 6.9 million barrels per day after July, in addition to that Iran’s talks with world powers may free its oil supplies from sanctions. American. “If sanctions on Iran are lifted, an additional 1.4 million barrels per day may enter the market in a relatively short time,” she said.
She added, “It appears that the demand for oil will continue to rise, which highlights the enormous effort required to move on the right path to reach the stated ambitions.”