Slow Recovery Ahead for Global Oil Demand as Pandemic Drags On

"With the on-coming northern hemisphere winter, we will enter uncharted territory regarding the virulence of Covid-19."

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It cut its forecast for average 2020 oil demand, now expecting it to fall by 8.4 million barrels per day (mbd) or 8.4 percent from last year, to 91.7 mbd.

The OPEC oil cartel similarly trimmed its forecasts in its latest report on Monday. It now expects global demand to fall by 9.5 mbd to 90.2 mbd in 2020.

Both organizations pointed in particular to weakness in India, where oil demand dropped in both July and August.

But the IEA said oil demand in China has already posted year-on-year increases as the country's economy returns to growth.

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However, China has recently cut back on oil imports, which were helping support global markets, while OPEC nations and their allies have begun to increase production following temporary additional cuts.

"In last month’s Report, we said that the market was in a state of 'delicate re-balancing'. One month later, the outlook appears even more fragile," said the IEA. 

(Writer & Editor: RL/JXB, Agence France-Presse)

Source: http://u.afp.com/3apC