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The International Energy Agency on Monday issued a stunning forecast, now projecting oil demand to fall this year on the same day prices collapsed by some 20%.
The IEA cut its global oil demand view, now seeing a 90,000 barrel a day decline this year, from a previous forecast of an 825,000 barrels a day increase.
“The coronavirus crisis is affecting a wide range of energy markets – including coal, gas and renewables – but its impact on oil markets is particularly severe because it is stopping people and goods from moving around, dealing a heavy blow to demand for transport fuels,” said Fatih Birol, the IEA’s executive director, in a statement.
China’s economy has nearly grounded to a halt, which is having a big impact since it accounted for more than 80% of global oil demand growth last year.
Oil prices CL.1, -22.72% BRN00, -21.49% plunged on Monday in response to Saudi Arabia starting a price war.
