IEA cuts 2020 oil demand forecast, sees ‘treacherous’ path forward with rising coronavirus instances

Oil area employees with Wisco work on a pump jack in North Dakota, the United States, on November 6, 2013.

Ken Cedeno | Corbis News | Getty Images

The International Energy Agency on Tuesday minimize its forecast for 2020 oil demand development, citing a “treacherous” path forward amid weakening market sentiment and an upsurge within the variety of coronavirus instances reported throughout the globe.

In a closely-watched month-to-month report, the IEA trimmed its outlook for worldwide oil demand development to 91.7 million barrels per day. That marks a contraction of 8.four million bpd year-on-year, greater than the 8.1 million bpd contraction predicted within the Paris-based vitality company’s August report.

“We count on the restoration in oil demand to decelerate markedly within the second half of 2020, with many of the straightforward positive aspects already achieved,” the IEA stated.

“The financial slowdown will take months to reverse utterly, whereas sure sectors akin to aviation are unlikely to return to their pre-pandemic ranges of consumption even subsequent 12 months.”

International benchmark Brent crude traded at $39.52 a barrel on Tuesday morning, down round 0.2%, whereas U.S. West Texas Intermediate crude (WTI) stood at $37.18, roughly 0.2% decrease.

Oil costs have dropped round 40% for the reason that begin of the 12 months.

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