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.