China oil demand set for 2022 contraction
Price cap set to reduce Russian output by 1.4 mln bpd
Russian oil revenue in Nov fell on lower prices, discounting

LONDON, Dec 14 Reuters Global oil demand growth will slow next year but will still be at a robust 1.7 as China recovers from COVIDrelated economic doldrums, the International Energy Agency IEA said on Wednesday.

This year China is still headed for a contraction in oil demand of 400,000 barrels per day bpd to 15.4 million bpd, the IEA added, before recovering by almost one million bpd in 2023.

Russia39;s oil output will fall by 1.4 million barrels per day bpd next year the IEA predicted, further tightening balances as a Dec. 5 price cap imposed by the G7, the European Union and Australia takes effect seeking to curb Moscow39;s wartime revenue.

Russia39;s output rose by 90,000 bpd in November to 11.2 million bpd, just 200,000 bpd below levels seen before Moscow sent troops into Ukraine.

Its output has consistently outstripped IEA predictions though lower global prices and steeper discounts on Russian oil meant Moscow39;s revenue fell by 700 million to 15.8 billion, the IEA said.

While lower oil prices come as a welcome relief to consumers faced by surging inflation, the full impact of embargoes on Russian crude and product supplies remains to be seen, the IEA said.

Brent oil prices stood at 81.57 a barrel at 1150 GMT on Wednesday, down from a high near 140 a barrel reached briefly in March.

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