Perhaps falling oil prices knew this in advance...
IEA sees oil demand declining for first time in a decade
The International Energy Agency slashed its forecast for global oil demand growth in 2020 by 365,000 barrels per day to 825,000 barrels per day, the lowest level since 2011, as the coronavirus dampens demand in China’s oil-hungry economy. In its latest monthly outlook, the IEA sees global oil demand shrinking by 435,000 barrels per day in Q1, which would be the first quarterly contraction since the global financial crisis in 2009.
The International Energy Agency slashes its forecast for global oil demand growth in 2020 by 365K bbl/day to 825K bbl/day, the lowest level since 2011, as the coronavirus outbreak dampens demand in China's oil-hungry economy. In its latest monthly outlook, the IEA sees global oil demand shrinking by 435K bbl/day in Q1, which would be the first quarterly contraction since the global financial crisis in 2009.
China accounted for more than 75% of global oil demand growth in 2019, and the country's thirst for oil has more than doubled since the outbreak of the SARS virus in 2003: "There is little doubt that the virus will have a larger impact on the economy and oil demand than did SARS," the IEA says.
The downbeat assessment dwarfs OPEC's 230K bbl/day cut to its 2020 growth outlook to 990K bbl/day.
OPEC might have succeeded in balancing the oil market this year if the coronavirus had not hit global demand, the IEA says.
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