IEA Sees Lower Crude Demand in 2020, 2021

The International Energy Agency lowered its global oil demand forecasts for the first time in several months in its latest report, as the number of Covid-19 infections remains high and amid ongoing weakness in the aviation sector.
In a closely-watched monthly report, the IEA said it now sees global oil demand for 2020 at 91.1 million barrels per day, reflecting a fall of 8.1 million barrels per day year-on-year, CNBC reported.
This revised forecast is 140,000 barrels per day lower than the IEA’s previous projection.
The agency also revised down its 2021 global oil demand estimate by 240,000 barrels per day to 97.1 million barrels per day, with jet fuel demand identified as the “major source” of weakness.
The report comes shortly after the world’s largest oil and gas firms reported historic losses in the second quarter as coronavirus lockdown measures led to an unparalleled demand shock in energy markets.
Earlier this year, IEA Executive Director Fatih Birol said that 2020 may well come to represent the worst year in the history of oil markets.
“Recent mobility data suggest the recovery has plateaued in many regions, although Europe, for now, remains on an upward trend,” the IEA said.
“For road transport fuels, demand in the first half of 2020 was slightly stronger than anticipated, but for the second half we remain cautious and the upsurge in Covid-19 cases has seen us downgrade our estimates, mainly for gasoline.”