IEA cuts 2020 demand outlook amid rising coronavirus circumstances
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In a closely-watched month-to-month report, the IEA trimmed its outlook for worldwide oil demand progress to 91.7 million barrels per day. That marks a contraction of 8.4 million bpd year-on-year, greater than the 8.1 million bpd contraction predicted within the Paris-based vitality company’s August report.
“We anticipate the restoration in oil demand to decelerate markedly within the second half of 2020, with many of the straightforward positive factors already achieved,” the IEA stated.
“The financial slowdown will take months to reverse fully, whereas sure sectors corresponding to aviation are unlikely to return to their pre-pandemic ranges of consumption even subsequent 12 months.”
Worldwide benchmark Brent crude traded at $39.52 a barrel on Tuesday morning, down round 0.2%, whereas U.S. West Texas Intermediate crude (WTI) stood at $37.18, roughly 0.2% decrease.
Oil costs have dropped round 40% for the reason that begin of the 12 months.