XLE - IEA updates outlook - sees deficit oil market tight refined product balances

The International Energy Agency "IEA" updated its forecast of global oil market balances Wednesday, flagging weaker demand growth and mitigated Russian production impacts. Earlier in the year, the IEA, the US Department of Energy and OPEC all forecast 2022 surpluses. Tuesday, the Department of Energy updated it's forecast, flagging marginal deficits during 2022. The IEA now also expects to see a slight deficit in the oil market this year.  Despite forecasting surpluses earlier in the year, OECD stockpiles fell 42.2mb during February, before any measurable impacts from Russia's war in Ukraine. The 1.5mb/d deficit in February sets a bullish baseline for agency forecasts in 2022, particularly given anticipated impacts to Russian supply. The IEA expects Russian supply to fall by 1.5mb/d in April, less than the 3.0mb/d previously flagged by the Agency.  China's Covid response is expected to reduce crude demand by almost 1.0mb/d in April, and Wednesday the IEA cut

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IEA updates outlook - sees deficit oil market, tight refined product balances