China lockdowns to cut global oil demand: IEA

China lockdowns to cut global oil demand: IEA

With the weaker demand outlook and the massive release of emergency oil reserves by IEA members, the agency now sees global markets in balance for much of the year

FILE - In this Jan. 16, 2015, file photo, pumpjacks are seen operating in Bakersfield, Calif. On Friday, April 23, 2021, California Gov. Gavin Newsom announced he would halt all new fracking permits in the state by January 2024. He also ordered state regulators to plan for halting all oil extraction in the state by 2045. (AP Photo/Jae C. Hong, File)

Published: Wed 13 Apr 2022, 5:56 PM

The impact of sanctions and buyer aversion on Russian oil will take full effect from May onwards, the International Energy Agency said on Wednesday as it trimmed the forecast for global oil demand this year after China reimposed lockdowns to contain the spread of a resurgent coronavirus.

With the weaker demand outlook and the massive release of emergency oil reserves by IEA members, the agency now sees global markets in balance for much of the year.

The IEA said there is unlikely to be a “sharp deficit” in global oil markets, thanks to multiple factors mitigating the impact of lost Russian flows. The most recent is the imposition