The IEA (International Energy Agency) says that global oil demand will decline in 2020 as coronavirus constricts travel and broader economic activity.
“The coronavirus crisis is affecting a wide range of energy markets – including coal, gas and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” says the IEA. “This is especially true in China, the largest energy consumer in the world, which accounted for more than 80% of global oil demand growth last year. While the repercussions of the virus are spreading to other parts of the world, what happens in China will have major implications for global energy and oil markets.”
The organisation says demand for 2020 will be down by 90,000 barrels a day to 99.9 million barrels a day when compared to 2019.
“The short-term outlook for the oil market will ultimately depend on how quickly govermments move to contain the coronavirus outbreak, how successful their efforts area, and what lingering impact the global health crisis has on economic activity,” says the IEA.