Status: 12/14/2022 12:25 p.m
The International Energy Agency warns that oil prices could rise sharply again in the coming year as a result of the sanctions against Russia. Global demand will continue to increase.
The International Energy Agency (IEA) has warned of a sharp rise in oil prices in the coming year as a result of the sanctions against Russia. According to the report by the Paris-based interest group of western industrialized countries, the full effect of the embargoes on Russian crude oil and oil products is still pending. On February 5, the second stage of Western sanctions on Russian oil products will come into force.
According to the IEA, Russian production could fall by 14 percent by the end of the first quarter of 2023. In this case, the recent price trend in the oil market could reverse, say the energy experts.
Oil prices have been falling since November
Oil prices have tended to fall since the beginning of November. During this time, the price of Brent crude oil from the North Sea, which is important for Europe, fell from almost 100 dollars a barrel to only around 81 dollars.
Demand forecasts increased
The IEA also raised its forecasts for global oil demand this year and next. In 2022, demand will be 2.3 million barrels per day higher, 0.14 million barrels more than the previous forecast. For 2023, the forecast was raised by 0.1 million to 1.7 million barrels per day. Global crude oil consumption should then average 101.6 million barrels per day.
In justification, the agency pointed out above all that China’s economy had remained surprisingly resilient despite the tough corona measures of the past few months. In addition, the Indian economy continues to be on a robust growth path.