- The International Energy Agency has lowered its forecast for global oil demand for 2020 to 91.7 million barrels a day, as it expects a "treacherous" path.
- "We expect the recovery in oil demand to slow significantly in the second half of 2020, with most of the slight gains already made," the IEA said.
- A potential second wave of COVID-19 in Europe, weak demand in India and assembly restrictions in many countries could further limit mobility again, the agency said in its monthly report.
- Oil prices have fallen by around 40% since the beginning of the year.
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The International Energy Agency has its Global oil demand forecast for 2020 again on Tuesday as rising cases of COVID-19 suggest economic recovery will be slower than previously expected.
In its closely watched monthly report, the Paris-based agency said global oil demand will fall 8.4 million barrels a day this year to 91.7 million barrels a day, compared to the 8.1 million contraction forecast in August Barrel per day.
The agency's report offered a far more fragile outlook on demand in its latest forecast.
"We expect the recovery in oil demand to slow significantly in the second half of 2020, with most of the slight gains already made," the IEA said.
"It will be months before the economic slowdown is fully reversed, while certain sectors like aviation are unlikely to return to pre-pandemic consumption levels next year."
All three of the big oil market forecasters have slashed their outlook for demand growth. OPEC has cut its forecast for global oil demand by 400,000 barrels per day on Monday to an average of 90 million barrels per day in 2020.
The USA Energy information management Last week, global oil demand was expected to fall 8.3 million barrels a day to 93.1 million barrels a day this year. The EIA cut its estimate of demand growth in 2021 by 500,000 barrels per day to 99.6 million barrels per day, compared to its August forecast.
Although demand has accelerated rapidly from its low in April, the way forward looks "treacherous" as a resurgence of new virus cases in Europe, renewed weakness in India and assembly restrictions in many countries threaten improved mobility and hence fuel economy said the agency.
"With winter approaching in the northern hemisphere, we will be breaking new ground in terms of the virulence of COVID-19," the report said.
A potential second wave of COVID in Europe could affect mobility again, the IEA said, although the impact would be less than it was between March and May when governments first put strict lockdown measures in place.
Oil prices have fallen by around 40% since the beginning of the year.