Nigeria, Kuwait, Saudi-Arabia, United Emirates and other countries would bring daily crude oil production to 99.7 million globally this year, the International Energy Agency, IEA has said.
Presently, the country is producing about 1.4 million barrels of crude oil per day and would likely increase its production, as the global oil recovers fully soon.
This, when combined with production from other countries would bring the daily crude oil figures to 99.7million.
IEA, in its 2022 forecast said that global oil demand would surpass pre-pandemic levels this year, as fears over the latest coronavirus wave subside, creating the potential for another “volatile” year of oil prices.
The body in its monthly oil market report, raised demand estimates by 200,000 barrels a day b/d for both 2021 and 2022, to reflect clear signs that impact on economic activity and oil demand from the omicron variant remained “relatively subdued.”
It said that oil demand was seen rising by 5.5 million b/d in 2021 and by 3.3 million b/d in 2022, adding that the figure has surpassed its pre-pandemic levels by 200,000 b/d to 99.7 million b/d.
The global oil demand, IEA said defied expectations as its rose by 1.1 million b/d to 99 million b/d in the fourth quarter of 2021, a development, which signified an upward revision of 345,000 b/d, compared to its previous reports.
“If demand continues to grow strongly or supply disappoints, the low level of stocks and shrinking spare capacity mean that oil markets could be in for another volatile year in 2022.” the IEA said.
The IEA’s latest report comes as oil prices hit fresh seven-year highs at over $88/b, supported by a growing consensus that oil demand and supply balances are tightening this year, with some market watchers predicting Brent futures will hit $100/b later in the year.
On the supply side, the IEA said it now sees OPEC+ spare capacity shrinking to 2.6 million b/d later this year from around 5 million b/d currently if the producer group continues to unwind its supply cuts and Iran remains under sanctions.