The International Energy Agency (IEA) said that oil supply may soon exceed demand, and added that despite the increase in cases of coronavirus, oil demand will remain strong.
"An increase in oil supply against the background of an increase in production by some producers may lead to a significant surplus in the 1st quarter of 2022," the IEA said.
In addition, the IEA reported that the easing of blocking measures suggests that mobility remains stable. Against this background, the IEA improved its estimate of oil demand for the past and current years by 200,000 barrels per day.
But the IEA warned that against the background of extremely low oil and fuel reserves in the OECD countries, any supply disruptions could contribute to increased market instability this year.