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Oil Surplus Returns as Supplies Climb and Omicron Hits, IEA Says

  • Agency cuts first-quarter demand view by 600,000 barrels a day
  • Extra output is coming from OPEC+, the U.S., Brazil and Canada
Industry in Ningbo as China 1Q GDP Drops 6.8%
Photographer: Qilai Shen/Bloomberg

Global oil markets have returned to surplus and face an even bigger oversupply early next year as the omicron variant impedes international travel, the International Energy Agency said.

Supplies are rebounding around the world -- from the current OPEC+ ramp-up and sales from strategic reserves, to record output in the U.S., Canada and Brazil next year -- the IEA said. With jet fuel demand also faltering amid the new virus strain, global oil inventories could swell at a rate of 1.7 million barrels a day in the first few months of 2022.