Oil field workers with visco work on a pump jack in North Dakota, USA, on November 6, 2013.
Ken Sideno | Corbis News | Getty Images
LONDON – The International Energy Agency (IEA) on Tuesday downgraded its forecast for 2020 oil demand growth to a “treacherous” path amid market weakness and a surge in reported coronavirus cases worldwide.
In a closely watched monthly report, the IEA cut its outlook for growth in world oil demand to 91.7 million barrels per day. More than the 8.1 million bpd contraction predicted in the August report of the Paris-based energy agency, .4. showing a contraction of million million bpd.
“We expect recovery recovery in oil demand to decline significantly in the second half of 2020, with most of the simple benefits already being achieved,” the IEA said.
“It will take months for the economic downturn to reverse completely, while some sectors, such as aviation, are unlikely to return to pre-epidemic levels of consumption next year.”
International benchmark Brent crude rose about 1.5% to .2 40.21 a barrel on Tuesday morning, while U.S. West Texas Intermediate Crude (WTI) rose about 1.7%. Remained at 37.90.
Oil prices have fallen by about 40 per cent since the beginning of the year.
“I think what we’re reporting in the main report is that prices seem to be weakening,” Neil Atkins, head of the IEA’s oil industry and markets division, told CNBC’s “Street Signs Europe” on Tuesday.
“We’ve seen oil prices very, very range-bound, between 40 and $ 45 a barrel for Brent from about mid-June. But, recently we’ve tested 40 barrels a bar and it looks like a recovery in recovery.” It’s starting to get started. “
Atkinson said the increase in coronavirus cases across Europe, in particular, reflected a cause for concern, adding: “It looks like we’re not out of the woods yet.”
New weakness
The report comes shortly after OPEC lowered its growth forecast for oil demand in 2020, citing weak-expected recovery in India and other Asian countries. The oil producer group also warned on Monday that the risks would be “elevated and downside” in the first half of 2021.
The IE on Tuesday echoed that sentiment, saying the “new weakness” in India reflects a cause for concern. However, China, which emerged from the early downturn of other major economies, continued to recover “strongly”, the group said.
Following the coronavirus epidemic, energy market participants have become concerned about the economic recovery of side effects and the demand for fuel.
The global health crisis this year has been linked to an unprecedented energy demand shock, with the IEA warning earlier that the decline in oil demand growth in 2020 could be the largest in history.
The IAA said it expects global oil demand to reach 5.5 million bpd next year. Will increase to an average of 1.1.1 million bpd in 2021. Will be reached.
To date, more than 29.2 million people have contracted Covid-19 worldwide, with 928,576 related deaths, according to data compiled by Johns Hopkins University.
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