Crude oil prices went up by over one percent on Thursday as the International Energy Agency (IEA) has increased its global oil demand forecast for this year and next year, saying that gas-to-oil switching could add 500,000 b/d to consumption until the end of March. At 1140 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.92 (+1.11 percent) to reach $84.10 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $81.35 a barrel, up by $0.91 (+1.13 percent). The price for Opec Basket was recorded at $82.37 a barrel with 0.19 percent decrease, Arab Light was available at $82.50 a barrel with a 0.77 percent decrease, while the price of Russian Sokol jumped to $85.18 after gaining 0.70 percent. According to IEA, the ongoing moves by Opec+ to ease its production cut deal could reverse the global inventory draw by the middle of next year. In its latest Oil Market Report (OMR) the Paris-based energy watchdog forecasts demand to rise by 5.5mn b/d to 96.3mn b/d in 2021, and by 3.3mn b/d to 99.6mn b/d in 2022, slightly above pre-Covid levels. These are up from a respective 96.1mn b/d and 99.4mn b/d in last month’s report. It said the effects on its forecasts of fuel switching are tempered by a weaker economic outlook. “The higher energy prices are also adding to inflationary pressures that, along with power outages, could lead to lower industrial activity and a slowdown in the economic recovery,” the IEA said. Global crude supply fell by 260,000 b/d in the month of September to 96mn b/d, because of the effects of Hurricane Ida in the US and from maintenance in Canada and Norway, the IEA said. It said the return of lost US output and the ongoing easing of Opec+ production cuts will mean a sharp rise in supply this month. The IEA expects Opec+ to pump 700,000 b/d below demand requirements during the fourth quarter. But if the group continues to unwind its cuts, it could produce 800,000 b/d and 2.1mn b/d above the call on its crude in the first and second quarters of next year, respectively, the report said.