Summer heatwaves in Europe and scarce supplies of pricey natural gas are boosting demand for oil as power stations look for alternative fuels to meet the surging demand for electricity, the International Energy Agency said.
The IEA said the trend would help drive additional oil-demand growth totaling 380,000 barrels a day this year. It raised its 2022 oil-demand growth forecasts by that amount to 2.1 million barrels a day.
The agency also raised its forecasts for total oil demand in 2022 and 2023 by 500,000 barrels a day apiece, to 99.7 million barrels a day and 101.8 million barrels a day, respectively.
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Barring a major recession, oil prices should stay high enough for OXY to churn out massive cash flows for another couple of years.