Global demand for oil will rise more than what has been forecasted previously and this is the result of heat waves and soaring gas prices which drives countries to switch fuels for power generation, said International Energy Agency (IEA), reports BSS.
In a monthly report, the Paris based agency also states that oil prices have dropped by $30 per barrel from a peak in June due to growing supplies and increased concerns over deteriorating economic outlook.
Furthermore, the price of natural gas and electricity was escalated to new records. Hence, some countries are being prompted to switch to oil using, added IEA.
According to their latest data found from the research, it is confirmed that the several regions of the world, especially Europe and Middle East and Asia, experienced blazing heat waves. So, the consumption of energy has been increased and the people of that region began to use oil instead of gas for power generation.
Consequently, the IEA re-estimates its demand forecast by 380,000 barrels per day.
Demand is now seen rising by 2.1 million bpd (barrel per day) to a total of 99.7 million bpd in 2022. It will reach 101.8 million bpd in 2023, exceeding pre-Covid levels.
The report is the expression of European Union plan to cut gas consumption across the 27-nation bloc by 15 percent came into effect on Tuesday.
It’s goal is to coping up with the energy price crisis spurred by Russia's war in Ukraine.
