Vaccines set to unleash pent-up oil demand; expect big jump in Oct: IEA

An oil storage tank and crude oil pipeline equipment is seen during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas. (Photo: Reuters)

Oil prices hit a six-week high on Tuesday as Hurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages to Texas and Louisiana. (Photo: Reuters)


After a three-month slide in global due to the spread of the Delta variant of Covid-19 and pandemic restrictions, especially in Asia, vaccine rollouts are set to power a rebound, the International Agency (IEA) said on Tuesday.


“Already signs are emerging of Covid cases abating with demand now expected to rebound by a sharp 1.6 million barrels per day (bpd) in October, and continuing to grow until end-year,” the wrote in its monthly oil report.



The forecast a robust rebound in the market from the fourth quarter of the year citing “strong pent-up demand and continued progress in programmes”. Still, the spread of the Delta variant caused the agency to trim its forecast for demand growth for the year overall by 105,000 bpd, while it raised its estimate for 2022 by 85,000 bpd.


Meanwhile, oil prices hit a six-week high on Tuesday as Hurricane Nicholas weakened into a tropical storm, bringing the threat of widespread floods and power outages to Texas and Louisiana. was up 55 cents, or 0.8 per cent, at $74.06 a barrel by 7.04 pm IST after hitting a session high of $74.28. WTI crude climbed 51 cents to $70.96.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, September 14 2021. 23:27 IST