By Noah Browning
LONDON, Jun 11 (.) – The world will need much more OPEC + oil as global demand is on track to return to its pre-pandemic levels by the end of 2022, the International Energy Agency (IEA) said on Friday, just weeks away. after saying that long-term pumping will have to decline to reduce emissions.
“OPEC + needs to turn on the taps to keep world oil markets adequately supplied,” the Paris-based energy watchdog said, adding that rising demand and countries’ short-term policies contradict the call. of the IEA to end new financing for oil, gas and coal in a stark 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 a March 2022, “he said in his monthly oil report.
Crude prices were trading near two-year highs of nearly $ 73 a barrel on Friday, heading for their third week of gains fueled by optimism about recovering demand.
OPEC + agreed on April 1 to gradually ease cuts to oil production between May and July and confirmed its decision at a meeting on June 1.
The IEA said it is “unlikely to be a problem” to meet the restored demand, while predicting that OPEC + will still have 6.9 million bpd of effective spare capacity after July and that Iran’s talks with the powers global markets could free their crude supply from US sanctions.
“If sanctions on Iran are lifted, an additional 1.4 million bpd could hit the market in a relatively short time,” he added.
On May 18, the IEA surprised the energy industry with its report “Net Zero by 2050”, in which it stated that investors should not finance new fossil fuel projects if the world wants to achieve by mid-century the targets to reduce emissions that cause rising temperatures.
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“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 is going to continue to increase, underscoring the enormous effort required to get going and achieve the stated ambitions,” he added.
GRAPH: OPEC Production Estimate + https://tmsnrt.rs/3gtbFo7
GRAPHIC: Demand / Supply Balance https://tmsnrt.rs/3gpdfYr
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(Edited in Spanish by Tomás Cobos and Carlos Serrano)