According to the International Energy Agency, which raised its oil price forecasts for 2021 and 2022, Brent Crude prices are likely to average $79.40 next year. According to the latest IEA assumptions given by Reuters, Brent Crude prices are expected to average $71.50 this year.

The IEA said in a statement to the news agency, “we publish our price assumptions when we think that this can be useful for the understanding of our forecast.”

“As current prices are getting more elevated, they start to have a significant effect on demand,” said the Paris-based international agency in a statement to Reuters as it published its Monthly Oil Market report for November.

“The world oil market remains tight by all measures, but a reprieve from the price rally could be on the horizon,” the statement added.

The IEA maintains its oil demand growth predictions for 2021 and 2022, which are 5.5 million barrels per day (bpd) this year and 3.4 million bpd next year, substantially unchanged from last month.

New COVID waves in Europe, poorer industrial activity, and higher oil prices will counter strengthening demand with robust gasoline consumption and an increase in international airline travel, according to the IEA.

The IEA says the oil price increase may soon be halted due to the rising global oil supply, led by the United States.