Growing demand for oil, parallel to the rise in gas prices, according to the International Energy Agency – today 24

The International Energy Agency announced Thursday that global demand for oil will rise more than expected this year as heat waves and rising gas prices push countries to switch to power generation.

The Paris-based agency said in a monthly report that oil prices fell $30 a barrel after peaking in June, due to rising supplies and “growing concerns about deteriorating economic prospects.”

Meanwhile, natural gas and electricity prices hit new records, prompting some countries to switch to oil, the agency reported.

“With many regions exposed to severe heat waves, the latest data confirms the increased use of oil in power generation, especially in Europe and the Middle East, but also throughout Asia,” the agency report said.

“There is also a change in the use of fuels in European industry, including refining,” said the agency, which advises developed countries on energy policy.

As a result, the International Energy Agency raised its demand forecast by 380,000 barrels per day.

Demand is now expected to increase by 2.1 million barrels per day, reaching a total of 99.7 million barrels per day in 2022. Demand will reach 101.8 million barrels per day in 2023, exceeding levels pre-Covid. The International Energy Agency said European oil supplies were being boosted by “exceptional demand” for heat and power generation and in industry.

The report comes as the European Union’s plan to cut gas consumption in 27 member states by 15 percent came into force on Tuesday.

This effort is aimed at dealing with the energy price crisis caused by the Russian war in Ukraine.

European Union countries also fear that Russia will cut off gas supplies during the winter in response to Western sanctions over the war.

The International Energy Agency said the heatwaves and “the start of what could be an increase in the gas-to-oil transition under new EU guidelines in response to uncertainty surrounding Russia’s gas supply, they are increasing the use of gasoline and diesel.