IEA Raises 2020 Oil Demand Forecast

The International Energy Agency (IEA) raised its forecast for global oil demand in 2020 but warned that the recovery may face some obstacles due to the high number of new COVID-19 cases worldwide.

The agency said in a monthly report that the collapse of fuel consumption during Q2 was less severe than expected, demand should recover during the next three months with the reopening of economic activity and lower production from OPEC.

The forecast for oil demand for 2020 was revised to 92.1M bpd, an increase of 400,000 barrels from last month.

Going into the third quarter, worldwide consumption should now pick up by about 14% from the previous three-month period, with the revival in economic activity, to average 94.3 M bpd, according to the agency.