PARIS: Global oil demand is set to rebound next month (October) from the recent impact of the delta variant of Covid-19, with consumption in oil markets set to tighten before year-end if Iran remains under sanctions, the International Energy Agency (IEA) said on Tuesday in its latest monthly oil markets report. With a surge in activity restrictions in a number of countries since July to curb rising Covid-19 infections, the IEA revised down its third-quarter global oil demand estimate by 200,000 b/d in its latest monthly oil markets report. Despite weaker Q3 demand, the IEA said it is now more optimistic over Covid-19 news due to progress in vaccine manufacturing and inoculations, and less restrictive social distancing measures in many countries. “Already signs are emerging of COVID cases abating with demand now expected to rebound by a sharp 1.6 million b/d in October, and continuing to grow until end-year,” the IEA said. “… Strong pent-up demand and continued progress in vaccination programmes should underpin a robust rebound from Q4 2021.” TLTP
