Rising commodity prices and sanctions on Russia “are expected to significantly dampen global growth” and affect inflation, the Paris-based International Energy Agency said, providing a bleak picture of supply shortages and uncertainty in oil markets. It was the first monthly oil report from the IEA, which represents 31 major industrialized nations, but excludes Russia, which briefly rose to nearly $140 a barrel after Russia invaded its neighbor.
“We saw a 2.5 million bpd decline in total (Russian) exports, with crude oil accounting for 1.5 million bpd and refined products accounting for 1 million bpd,” the IEA said in its oil report. In addition, it expects a drop in domestic demand for petroleum products in Russia.
“These losses could intensify if bans or public condemnation accelerate,” the Paris-based IEA said. Russia exports 7-8 million barrels of crude oil and products per day.
The IEA cut its global oil demand forecast for the second to fourth quarters of 2022 by 1.3 million barrels per day. It lowered its full-year growth forecast by 950,000 bpd to 2.1 million bpd, or an average of 99.7 million bpd.Reuters