Drop in Oil Price Ignores Coming Supply Shortfall: IEA

LONDON, May 16 (Reuters) – The drop in oil prices in recent weeks, fueled by fears of a possible recession, runs counter to forecasts of a supply deficit and strong demand towards the end of the year, the International Energy Agency said on Tuesday.

“The current market pessimism contrasts sharply with the improved market balance we expect in the second half of the year, with demand expected to exceed supply by almost 2 million barrels a day.”

The IEA raised its forecast for global oil demand by 200,000 barrels a day to 102 million barrels a day, noting that China’s economic recovery after the lifting of coronavirus restrictions exceeded expectations, with demand reaching a record 16 million barrels a day in March.

The world’s largest oil importer will account for almost 60% of the increase in global demand in 2023, compensating, along with India and the Middle East, for slow demand in developed countries.

The original message in English is available under the code: (Noah Browning, translated by Tomasz Kanik)