The International Energy Agency (IEA) has risen its forecast for global demand for crude oil during 2020, but it clearly warned of the consequences of the Corona pandemic and the threat it poses to expectations.
Meanwhile, the IEA predicts and increase to 92.1 million barrels per day during 2020, an increase of 400 thousand barrels per day compared to the expectations it provided during the past month, as the decrease in demand during the second quarter of the year came less than expected.
Crude oil markets have made clear progress in the recent period after the record low levels recorded before, but the acceleration of infections in many countries is deemed a matter of concern in relation to the upcoming expectations.
The IEA said that easing shutdowns in many countries caused a strong recovery in fuel shipments in May and June, and possibly also in July. However, the agency believes that oil refining activity during 2020 is expected to decrease more than the expectations announced by the agency last month, and to return to growth weakly during the year 2021.
"As for refineries, any benefit from improving global demand is likely to be met by a challenge from higher oil inventories from the second quarter, which saw weak price levels," the International Energy Agency said.
This has decreased US crude oil prices for the second consecutive day and recorded its lowest levels this week at the level of $ 38.51 a barrel after it opened today's trading at the level of $39.56 a barrel. This came after trading was confined to a narrow range during most of this week's periods.
Brent crude also
declined for a second straight session, recording the lowest level at $41.34 a
barrel, which is the lowest level this week, where today’s open was at the level of $42.34 a barrel.