The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing warning concerning the tempo of financial restoration from the pandemic.
- Last Updated: September 15, 2020, 2:06 PM IST
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LONDON: The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing warning concerning the tempo of financial restoration from the pandemic.
The Paris-based IEA lower its 2020 outlook by 200,000 barrels per day (bpd) to 91.7 million bpd in its second downgrade in as many months.
“We expect the recovery in oil demand to decelerate markedly in the second half of 2020, with most of the easy gains already achieved,” the IEA mentioned in its month-to-month report.
“The economic slowdown will take months to reverse completely … in addition, there is the potential that a second wave of the virus (already visible in Europe) could cut mobility once again.”
Renewed rises in COVID-19 instances in lots of nations and associated lockdown measures, continued distant working and a nonetheless weak aviation sector are all hurting demand, the IEA mentioned.
Increasing oil output and the downgraded demand outlook additionally imply a slower draw on crude oil shares which piled up on the top of lockdown measures, it added.
The company now predicts implied inventory attracts within the second half of the 12 months of about 3.four million barrels per day, practically a million bpd lower than it predicted final month, with July storage ranges in developed nations once more reaching report highs.
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