The
International Energy Agency (IEA) lowered its oil demand forecasts for the third
and fourth quarters this year, as the rising covid-19 cases would hit demand on
energy products.
The
IEA said that 91.9 million barrels will be needed every day in 2020, down by 140,000
barrels per day, compared to 8.1 million bpd in 2019.
The
agency stressed that “the stalling of mobility as the number of Covid-19 cases
remains high, and weakness in the aviation sector.”
The
new confirmed coronavirus cases is meanwhile hovering around 280,000 daily, the
highest rate since the early days of the pandemic.
Commenting
on jet fuel demand, the IEA said: “Revised data show that in April the number
of aviation kilometres travelled was nearly 80% down on last year and in July
the deficit was still 67%.”
Another
key factor to take into consideration is the rise in OPEC+ production, which
increases oil supply in the market.
Crude oil futures traded
slightly lower at $42.60 a barrel, while Brent crude was at $45.30 a barrel, on
concerns after the U.S. government maintained tariffs on some European goods.