IEA raises 2020 oil demand forecast but warns COVID-19 clouds outlook

LONDON (Reuters) – The International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warned that the spread of COVID-19 posed a risk to the outlook. The Paris-based IEA raised its forecast to 92.1 million barrels per day (bpd), up 400,000 bpd from its outlook last month, citing a smaller-than-expected second-quarter decline. “While the oil market has undoubtedly made progress … the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the IEA said in its monthly report. The easing of lockdown measures in many countries caused a strong rebound to fuel deliveries in May, June and likely also July, the IEA said. But oil refining activity in 2020 is set to fall by more than the IEA anticipated last month and to grow less in 2021, it said. Demand in 2021 will likely be 2.6 million bpd below 2019 levels, with kerosene and jet fuel due to a drop in air travel accounting for three-quarters of the shortfall. “For refiners, any benefit from improving demand is likely to be offset… continue reading

Continue reading IEA raises 2020 oil demand forecast but warns COVID-19 clouds outlook. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply