Oil demand to exceed ‘pre-virus’ levels – IEA – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

  • Date: 12-Jun-2021
  • Source: Arab Times
  • Sector:Oil & Gas
  • Country:Gulf
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Oil demand to exceed ‘pre-virus’ levels – IEA – ARAB TIMES – KUWAIT NEWS – Arab Times Kuwait English Daily

OUT of the blue, the International Energy Agency (IEA) has started asking oil producing countries to pump more oil and continue investing in new oil fields. For the time being, it is not asking to switch to green energy or demanding any minimum or zero production; this indicates the inclination to stay with oil for some time. This request is coming at a time when the agency was pushing to switch away from oil, and with rulings from the European courts for reduced carbon emission. The same is happening with the shareholders of major international American oil companies in terms of the demand to go green and minimize oil and gas investment.

The focus is on the second half of this year, whereby demand for oil is expected to rise in view of the increased vaccination globally, which could push for demand for almost everything and open all countries globally. However, some hiccups could emerge from some countries or a new variant may appear. For now, the oil price is comfortably at $ 72 per barrel and likely to move up.