World must wait for extra oil as Ida offsets OPEC hike - IEA

Bloomberg reports that the International Energy Agency said that the world will have to wait until October for additional oil supplies as output losses from Hurricane Ida wipe out increases from OPEC+.

According to the IEA monthly report, consumers should have been enjoying “solid gains” in production as the Organization of Petroleum Exporting Countries and its allies continued their revival of idle capacity. Instead, global supply fell by 540,000 barrels a day in August due to unexpected disruptions and will be flat this month.

Global oil demand has been falling since July as rising Covid-19 cases prompt mobility restrictions in Asia, the IEA said. 

World fuel consumption will contract by 310,000 barrels a day on average each month from July to September, the IEA said. Yet there are signs that the coronavirus resurgence is abating and the agency expects a sharp rebound in demand of 1.6 million barrels a day next month, with continued growth to the end of the year. 

The matching shifts in supply and demand meant this year’s prevailing oil-market trend -- shrinking inventories -- continued unabated. Fuel stockpiles in developed economies fell by 30 million barrels last month, putting them 186 million barrels below the five-year average, according to preliminary IEA estimates. There should be “hefty draws” again this month, the agency said.