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IEA predicts drop in oil demand to a minimum in 10 years

UNITED STATES (OBSERVATORY NEWS) — The forecast of the International Energy Agency (IEA) on the growth of world oil demand was reduced to the lowest level in a decade, the head of the agency Fatih Birol said. Reuters.

According to Birol, the prognosis can also be reduced in the future due to the effects of the outbreak of Chinese coronavirus.

“We certainly see the lowest growth in oil demand in the last 10 years, and we may have to revise it … downward,” Birol told Reuters at an energy conference in London.

Demand is expected to fall by 435 thousand barrels per day in the first quarter, which is the first quarterly decline after the financial crisis, as predicted by the IEA.

In general, by 2020, the IEA has lowered its forecast for global demand growth by 365 thousand barrels per day to 825 thousand barrels per day.

The IEA previously reported that oil demand in the first quarter will fall by 435 thousand barrels per day on an annualized basis due to coronavirus, which will be the first quarterly drop after the financial crisis in 2009.

The Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, are considering further reductions in production in order to tighten supplies and maintain oil prices.

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