Energy Agency: Demand will clearly be lower for a longer period of time
According to the International Energy Agency (IEA), the recovery of the oil market from the corona pandemic will be slower than previously forecast. “The demand will clearly be lower than expected for a longer period of time,” said the IEA in a report in Paris on Tuesday. It therefore reduced its forecast for crude oil demand. “The market remains fragile,” writes the IEA.
After all, many economic restrictions were recently adopted in Europe again, which dampen the demand for crude oil.
For the year 2021, the association of leading industrial nations lowered its forecast for the global demand for crude oil by 110,000 barrels (159 liters) per day. Throughout 2021, demand is likely to rise by 5.7 million barrels per day compared to the previous year. This would have made up for oil demand around two thirds of its historic decline in 2020. Overall, demand in 2021 should be 96.9 million barrels per day
The Organization of Petroleum Exporting Countries (OPEC) had already lowered its forecast for the first quarter of 2021 on Monday. The previous forecast has been reduced by one million barrels per day. OPEC pointed to uncertainties regarding the development of the corona crisis and the distribution of vaccines. OPEC estimated the demand for 2021 at 96.89 million barrels per day.
