Switch from gas increases oil demand, but financial headwinds threaten

Switch from gas increases oil demand, but financial headwinds threaten

August 12, 2022: -On Thursday, Humid summer temperatures and increased gas prices have increased the use of oil in power years, the International Energy Agency said, which increased demand but masking weakness in economies beset by recession worries.

“Natural gas and electricity prices have been soaring to new records, incentivizing gas-to-oil switching in some countries,” the Paris-based agency said in its oil report of this month, expanding its outlook for 2022 demand by 380,000 barrels for each day (BPD).

“These extraordinary gains, overwhelmingly concentrated in the Middle East and Europe, mask relative weakness in other sectors,” the IEA warned.

It cited decreased use of fuels for road transport in developed countries and restricting growth by the year’s end, “aligning with the more negative economic idea to show a considerable 2H22 contraction”.

Meanwhile, the global oil supply in July broke beyond pre-pandemic highs, buoyed by more than anticipated output by Russia exporting. The IEA said it came down by 115,000 BPD in July to 7.4 million BPD, a plunge of just 600,000 BPD from the start of the year.

Russian oil export revenues were down $2 billion in July to $19 billion primarily because of lower prices, and the IEA faded that China overtook Europe for the initial time as the leading goal for crude Russia.

Editor's Choice

Posts You Might Like

Teaching Value & Integrity | Steve Jani

The Fort McMurray First Nation Group of Companies is the wholly owned business entity of Fort McMurray 468 First Nation. It was established in 1987 as Christina River Enterprises, and the organization rebranded as FMFN Group in 2021. Providing Construction, Custodial, Petro-Canada Fuel & Convenience Store, and Transportation services to a broad portfolio of customers, the Group of Companies is creating financial stability and prosperity for the Nation.

A Resilient & Innovative Leader | Maushum Basu

Maushum Basu is a visionary leader who inspires his team with a clear, compelling purpose. Unafraid to take calculated risks, he understands that growth often stems from change and innovation. His deep commitment to both Airia Brands, Inc.

Directing with Courage & Precision | Martin Paquette

When speaking with Martin Paquette, one thing is immediately apparent: he’s honest. His transparency is refreshing. While many shy away from such vulnerability, Paquette sees it as a force to reckon with. The incredible emotional intelligence speaks to years of looking within—it’s also what allows him to acknowledge his mistakes gracefully and use them as opportunities to innovate.

An Innovative Thinker | Marina Charriere

Marina Charriere, CEO of Star Drug Testing Services, Star Drug Testing Services (Windsor Park), and First Defence Face Masks go hand in hand. Star is a drug and alcohol testing facility, and First D F M is a face mask company.

The-corporate-magazine-15

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​