California breaks records with the price of gasoline 1:03
(CNN Business) -
An increase in the global supply of crude could slow the rise in gasoline prices, which have reached record levels in parts of the United States and Europe.
According to the latest market report from the International Energy Agency, world oil supply increased by 1.4 million barrels a day in October, and half of that increase occurred in the United States, after production from the Gulf de México will recover from the damage caused by Hurricane Ida in August.
The Paris-based agency said it expected a further increase of 1.5 million barrels a day in November and December, with the United States contributing more of that increase than any other country.
"The world oil market is still tight by all parameters, but there could be a respite in rising prices on the horizon," he said.
US crude and Brent prices are trading near their six-week highs at $ 80.15 and $ 81.62 a barrel.
This has caused California drivers to pay a record $ 4.68 per gallon for gasoline, according to AAA.
Europe has not been spared either.
Prices hit record highs in the UK last month.
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An increase in production is expected
The IEA said it expected production to increase in the next two months, despite the fact that the group of oil-producing countries OPEC + declined calls from President Joe Biden to increase production beyond the expected monthly increase of 400,000 barrels a day.
The agency said it had increased its US production forecast by 300,000 barrels a day for the fourth quarter and by 200,000 barrels a day on average in 2022, as high prices encourage higher production.
"That increase will serve to somehow meet growing demand, which is still recovering from the COVID dip in 2020," the report says, adding that refinery production was also increasing again, after a while. maintenance during the autumn.
Forecast of global gasoline demand increases
The agency raised its forecast for global gasoline demand for the last quarter of 2021 by 250,000 barrels a day, after seeing that end-user demand "is on track to strengthen even further" during the rest of the year, as more countries become They open up to international travel, people move more and the vaccination campaigns against covid-19 rebound.
"Recent data shows that personal car use rose above pre-covid levels in many places, and interim data from the United States points to very strong gasoline in September and October," the report notes.
Despite high prices, gasoline demand in Europe also remained high, while consumption in China and India was more than 10% above 2019 levels, the IEA said.
"This is despite record levels of EV sales in September, and probably October as well," he said.
The agency maintained its forecast for global oil demand growth of 5.5 million barrels per day for 2021 and 3.4 million barrels per day in 2022 without making changes from the September report.
He said new covid-19 outbreaks in Europe, weak industrial production and high oil prices could slow any increase in demand.
Julia Horowitz contributed to this article.
