The Day at a Glance | December 14 2021

The Top

*IEA forecasts oversupply of crude oil in 2022; it decreased its global demand estimates in 600 thousand daily barrels.

*U.S. Senate will vote on resolution to increase debt ceiling today.

*Inflation for producers in the United States accelerated more than estimated in November (9.6% annual vs 9.2%e.).

*U.S. proposes Japan should eliminate tariffs on steel and aluminum during the Trump administration in 2018.

*Activist in Mexico imposes lawsuit against the construction of Dos Bocas, arguing that it would be built in a protected area.

*Industrial production in Europe increased in line with estimates during October (1.1% monthly; 3.3% annual).

*BoJ will inject up to 97 billion dollars in asset purchases in order to stop the surprising increase in short term rates seen in recent days.

*South African study finds that two doses of Pfizer vaccine gives 70% protection against hospitalization from the virus`s new variant.

Economic environment

The IEA forecasts an oversupply of crude oil in 2022. In its most recent global oil market report, the International Energy Agency (IEA) assured that there will once again be an oversupply of crude oil next year – as the Omicron variant prevents international travel. According to the IEA, production is increasing gradually in the OPEC+, while demand is expected to decrease 600 thousand daily barrels next year due to the virus`s new variant and international travel restrictions; meanwhile, other countries have gradually released strategic reserves and energy production in the United States, Brazil and Canada will log record levels next year. This trend of rising supply and decreasing demand increases the likelihood of seeing crude oil inventories reach levels of close to 1.7 million daily barrels in the first few months of 2022. International oil prices receded in light of the report`s conclusions this morning.