IEA Sees Lower Oil Demand in 2020

The International Energy Agency has revised its oil demand forecast for 2020 by 8.1 million barrels per day, warning that reducing air travel due to the Coronavirus will reduce global oil demand.

The Paris-based International Energy Agency lowered its forecast for 2020 by 140,000 bpd to 91.9 million bpd, the first downgrade in the rating in several months.

“Recent mobility data suggest the recovery has plateaued in many regions, although Europe, for now, remains on an upward trend,” the IEA said in its release Thursday.

“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.”