Mubasher: International Energy Agency reduced global oil demand growth forecasts by 2021, with increased coronavirus infections and associated blockade measures.
The Energy Agency said in a report released Tuesday that it expects global oil demand to grow 5.5 million barrels a day to 96.6 million this year, compared with a contraction of 8.8 million of barrels on the day of last year..
Current estimates are around 0.3 Millions of barrels compared to last month’s forecast.
This happens when countries continue to implement strict public health measures in an attempt to limit the spread of the virus, with closures imposed on Europe and parts of China..
The Energy Agency added that it expects oil demand growth to slow slightly during the first three months of the year as a result of tougher government plans calling for additional travel restrictions..
This is expected to again limit worldwide mobility, which will cause the International Energy Agency to reduce its forecast for first-quarter oil demand growth to 94.1 million barrels a day, which reflects a downward revision of 0.6 million barrels..
The IEA said: “The global launch of the vaccine is laying the groundwork for a stronger path for this year, with supply and demand returning to growth mode after an unprecedented crash in 2020.”“.
He added: “But oil demand will take longer to fully recover, as renewed closures in several countries affect fuel sales.“.