WTI drops back below $82 despite upbeat IEA’s oil market report

In its latest oil market report published on Wednesday, the International Energy Agency (IEA) said that China is set to account for half of 2023 oil demand growth after COVID-19 reopening.

Additional takeaways

Global refinery activity steady in Dec as US runs plunged due to weather-related outages.

Global oil stocks rose by 79.1 mln barrels MoM in Nov, hitting the highest since Oct 2021.

World oil supply growth in 2023 is set to slow to 1 mln bpd, led by declines in Russian exports.

Russian diesel exports surged to a multi-year high of 1.2 mln bpd ahead of Feb sanctions on them.

Russian oil exports fell by 200,000 bpd MoM in December to 7.8 mln bpd on new price cap sanctions.

OECD oil demand slumped by 900,000 bpd in q4 2022 on weak industrial activity, mild weather.

Global oil demand is set to rise by 1.9 mln bpd in 2023, to a record 101.7 mln bpd.

Market reaction

WTI is paring back gains from daily highs of $82.12 despite the upbeat IEA’s outlook on global oil demand. The US oil is trading at $81.75, still adding 0.55% on the day.