IEA believes global oil demand to fall by 8.6mln bpd in 2020
Moscow/Sputnik: The International Energy Agency (IEA) said on Thursday that the global oil demand in 2020 would fall by 8.6 million barrels per day, revising downward its previous report.
"Although 2H20 will be slightly weaker than previously forecast, our outlook for 2020 as a whole shows a demand fall of 8.6 mb/d, 0.7 mb/d more than in our previous Report. A resurgence of Covid-19 is a major risk factor for demand," IEA said in its fresh oil market report.
The agency said that the demand drop in the first half of the year could be not as steep as initially expected.
"We have raised our estimates for 2Q20 by circa 3.2 mb/d on evidence of stronger than expected mobility in some European countries and the US. We have also increased our Chinese demand figures for March and April. Together, these moves suggest that the decline in oil demand during 1H20 may not be as steep as first feared," IEA said.
However, the agency downgraded its forecast for the second half of the year.
"On the other hand, we have slightly revised down our expectations for the second half of 2020 and now expect demand to fall by 4.6 mb/d y-o-y, versus the 4.3 mb/d we saw last month," the report read on.
(Image Credit: Pixabay)
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