September 17, 2020, 06.07 PM

PARIS, KOMPAS.com – The recovery in global oil demand is predicted to be slow in the coming months as the ongoing coronavirus pandemic is keeping more people at home.

Transmission of the novel virus has surged throughout parts of the world and a growing number of people are working from home.

These reasons were sufficient for the IEA to lower its forecasts.

Oil demand was quick to recover from the heavy losses incurred in April when much of the world was placed under lockdown to curb the Covid-19 virus transmission.

Read also: Shell Pulls Out from LNG Project in Indonesia’s Masela Block

But the International Energy Agency said in its latest monthly report it expected the recovery in demand "to decelerate markedly in the second half of 2020, with most of the easy gains already achieved".

"The economic slowdown will take months to reverse completely, while certain sectors such as aviation are unlikely to return to their pre-pandemic levels of consumption even next year," it said.

It also warned that a potential second wave of the virus could propel governments to impose renewed restrictions on movement, while the uptake of remote working is also dampening demand for fuel.

Read also: Jakarta Imposes Work-From-Home Policy on Non-Essential Businesses

"Consumption remains around 10.7 million barrels per day below 2019 levels due to the impact of virus containment measures on transport demand, the uptake of teleworking and the economic crisis unleashed by the virus," said the IEA.

Page:


Recommendation
Comment wisely and responsibly. Comments are entirely the responsibility of the commentator as regulated in the ITE Law
Report
Thank You! We have received your report. We will remove comments that conflict with the Community Guidelines and the ITE Law.

More Headlines

News
August 16, 2022, 01.24 PM

UN Envoy Makes First Visit to Myanmar

News
August 15, 2022, 09.06 PM

Myanmar Court Sentences Suu Kyi to 6 Years

News
August 12, 2022, 04.41 PM

Researchers Warn of Melting Antarctic Ice Sheet

News
August 8, 2022, 09.07 AM

ASEAN Wraps Up Foreign Ministers Talks

Close Ads