In its monthly report published on Thursday, the International Energy Agency (IEA) said that it expects the global oil demand to rise by 2.1 million barrels per day in 2023 to surpass the pre-Covid levels at 101.8 million bps, as reported by Reuters.

Additional takeaways

"Russian oil exports fell by 115,000 bpd in july to 7.4 mln bpd from about 8 mln bpd at the start of the year."

"Declines in Russian supply more limited than previously forecast."

"Global oil inventories fell by 5 million barrels in June."

"Demand growth is expected to slow from 5.1 mln bpd in 1Q22 to just 40,000 bpd by 4Q22."

"World oil supply hit a post-pandemic high of 100.5 mln bpd in July."

"Record natural gas and electricity prices incentivise gas-to-oil switch in some countries."

"Gains due to oil switching mask relative weakness in other sectors amid economic headwinds."

"Raised 2022 estimate for oil demand growth by 380,000 bpd to 2.1 mln bpd due to more gas-to-oil switching."

Market reaction

Crude oil prices edged higher after this report and the barrel of West Texas Intermediate was last seen trading at $92.10, where it was up 0.6% on the day.