Global oil production is set to outpace demand from December as the US and Opec+ countries increase supply, the International Energy Agency said on Tuesday.
"Much-needed relief for tight markets is on the way, with world oil supply set to overtake demand starting this month," the Paris-based agency said in its monthly report.
"The steady rise in supply, combined with easing demand, has considerably loosened our balances."
The Opec+ group, led by Saudi Arabia and Russia, has been gradually increasing supply by 400,000 barrels per day since August to meet rising demand as global economies reopen.
The US, Canada and Brazil are also set to pump at their highest annual levels, lifting overall non-Opec+ output by 1.8 million bpd in 2022, said the agency.
Global supply would soar to 6.4 million bpd next year, compared with a 1.5 million bpd rise in 2021, if Opec+ member countries fully unwind their remaining production cuts, it said.
In the near term, additional barrels could come from strategic petroleum reserves (SPRs) – an emergency stockpile kept by a country to preserve access to oil in case of natural disasters, national security issues and other events.
The US announced on November 23 that it would release up to 50 million barrels of oil from its SPR, with similar action taken by China, India, South Korea, Japan and the UK in an effort to ease energy prices.
Oil prices dropped sharply in November as the emergence of the Omicron coronavirus variant threatened a fledgling economic recovery. However, prices rose subsequently and remained steady as concerns about the new strain eased.
In the US, most cases of the Omicron variant, which was first detected in South Africa last month, have been mild, the US Centres for Disease Control said on Friday.
Booster shots are also effective against the new variant and could offer up to 75 per cent protection, according to another study by the UK Health Security Agency.
Brent, the international benchmark, was down 0.01 per cent at $74.38 a barrel at 3.21pm UAE time while West Texas Intermediate, the gauge that tracks US crude, was trading 0.03 per cent lower at $71.27 a barrel.
“The surge in new Covid-19 cases is expected to temporarily slow, but not upend, the recovery in oil demand that is under way,” it said.
New containment measures put in place to halt the spread of the virus are expected to have a more “muted impact on the economy” due to widespread vaccination campaigns, the agency said. Demand for road transport fuels and petrochemical feedstocks will continue to post healthy growth.
However, the agency has revised down its global oil demand forecast for 2021 and 2022 by 100,000 bpd on average, mainly due to reduced jet fuel use owing to renewed restrictions on international travel.
Total production of crude oil, natural gas liquids and refinery feedstocks in Organisation for Economic Co-operation and Development countries rose 4.6 per cent annually in September, the agency said in a separate report.
On Monday, Opec raised its global oil demand forecast for the first quarter of 2022 but left its full-year growth projection as it said the Omicron coronavirus variant would have a mild impact. The group of crude exporters kept the world oil demand growth unchanged at 4.2 million bpd for 2022.
However, it raised its global oil demand forecast for the first quarter of next year by 1.11 million bpd to 9.13 million bpd as global economies continue to recover from the pandemic.
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
The%20specs
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
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UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Killing of Qassem Suleimani
Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
