Oil output was by 970,000 barrels per day in November, according to the IEA’s December Oil Market report, impelled by growth from the US and the OPEC+ countries.
According to the report the upwards trend in global production will extend itself into 2022, with the US, Canada and Brazil expected to pump at their highest levels ever, adding 1.8 million barrels per day to non-OPEC+ output in 2022.
Meanwhile demand was revised downward by 100,000 barrels per day for 2021 and 2022 due to a new surge in COVID-19 cases.
“Much needed relief for tight markets is on the way, with world oil supply set to overtake demand starting this month,” noted the report. “The emergence of the Covid-19 Omicron variant at the end of November sparked a steep sell-off in oil, but initial pessimism has now given way to a more measured response.”
With gas prices surging this holiday season a rise of 1.9 million barrels per day in refinery throughput in November is also encouraging. Throughput is expected to rise by another 660,000 barrels per day in December and for 2021 refinery runs are forecast to rise by 3.1 million barrels per day on average, the equivalent of just 42% of the decline during 2020.