By Noah Browning
LONDON (Reuters) – OPEC + oil producers will need to increase their production to meet demand that will recover to pre-pandemic levels by the end of 2022, the International Energy Agency said on Friday.
“OPEC + needs to turn on the taps to keep the world’s oil markets adequately supplied,” the Paris-based energy watchdog said, adding that rising demand and countries’ short-term policies are at odds with the IEA call to end new fuels and gas. and coal finance in a robust report released last month.
“In 2022 there is scope for the 24-member OPEC + group, led by Saudi Arabia and Russia, to increase crude supply by 1.4 million barrels per day (bpd) above its July 2021 target. as of March 2022, “he said in his monthly oil report.
OPEC + agreed in April to gradually ease oil production cuts from May to July and confirmed the decision at a meeting on June 1.
Meeting restored demand is “unlikely to be a problem,” the IEA said, forecasting that OPEC + will still have 6.9 million bpd of available capacity effective after July and that Iran’s talks with world powers could free up its oil supply from US sanctions.
“If sanctions against Iran are lifted, an additional 1.4 million bpd could be brought to market in a relatively short time.”
The IEA shocked the energy industry with its “Net Zero by 2050” report on May 18, saying investors should not finance new fossil fuel projects if the world is to meet the targets of controlling the emissions that cause rising prices. temperatures for mid-century.
“This roadmap notes that most of the countries’ promises are not yet backed by short-term policies and measures,” the IEA said on Friday.
“It appears that the demand for oil will continue to rise, underscoring the enormous effort required to move towards the stated ambitions.”
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