IEA cuts estimates of 2021 oil demand

Shafaq News/ The International Energy Agency lowered forecasts for global oil demand as renewed lockdowns to contain the pandemic temper the recovery expected this year.

IEA January report on Oil market issued today said, "Global oil demand is expected to recover by 5.5 mb/d to 96.6 mb/d in 2021, following an unprecedented collapse of 8.8 mb/d in 2020." However, it is not expected to recover to pre-pandemic levels before 2022 at the earliest.

“The global vaccine roll-out is putting fundamentals on a stronger trajectory for the year, with both supply and demand shifting back into growth,” the agency said, “But it will take more time for oil demand to recover fully as renewed lockdowns in a number of countries weigh on fuel sales.”

The IEA cut its consumption estimate for this quarter by 600,000 barrels a day, projecting a slight decline from the end of last year. Still, the world’s swollen oil inventories stand to abate by 100 million barrels in the three-month period as Saudi Arabia and other OPEC+ nations curb supplies.