World gasoline prices are forecast to decrease
The International Energy Agency (IEA) predicts that rising global crude oil supplies could curb record high gasoline prices.
According to the latest market report ofIEAGlobal oil supplies rose by 1.4 million barrels a day in October, with the United States accounting for half the increase as output in the Gulf of Mexico recovered from damage caused by Hurricane Ida in August.
The Paris-based agency expects oil production to rise to 1.5 million barrels per day in November and December, with the United States contributing the most to the increase. "The global oil market remains tight, but gasoline priceswill come down from record levels,” the IEA wrote in the report.
WTI and Brent crude are trading near six-week highs at $80.15 and $81.62 per barrel, respectively, leaving California drivers paying a record $4.68 a gallon. In the UK,Gasoline priceLast month also hit a record.
IEA sees oil output rising in next two months despite OPEC+ refusalPresident Joe Biden’s call for a production increase beyond the planned monthly level of 400,000 barrels per day. The agency also said it raised its forecast for US production by 300,000 barrels per day in the fourth quarter and by an average of 200,000 barrels per day in 2022, as high prices encourage higher output. Refinery output is also rising after fall maintenance.
Global gasoline demand in the final quarter of this year was also raised by the IEA by 250,000 barrels per day in the context of more and more countries reopening international tourism, higher vaccination rates...
For crude oil, the IEA kept its demand growth forecast at 5.5 million barrels per day in 2021 and 3.4 million barrels per day in 2022 – unchanged from its September report.
