IEA predicts collapse in oil demand by 20%

US, WASHINGTON (ORDO NEWS) — The head of the international energy agency Fatih Birol said that global oil demand could collapse by 20%. At the moment, it is about 100 million barrels per day, of which 60% go to transport fuel.

File Reuters

However, the coronavirus pandemic has led to a sharp reduction in traffic: air carriers cancel flights, car owners sit at home in quarantine.

“Today, three billion people cannot move. As a result, it can go up to 20 million barrels per day,” Birol quoted the Prime Agency as saying.

The latest IEA official forecast was less pessimistic. In light of the spread of COVID-19 outside of China, the IEA has lowered the bar by 1.1 million barrels per day. “It is expected that for the first time since 2009, demand will decline by 90 thousand barrels per day,” the review said.

At the same time, the agency notes that in the first quarter of this year, the demand of the world’s largest consumer, China, fell by 1.8 million barrels per day compared to the same period last year. Global demand for this period fell by 2.5 million barrels per day.

“We assume that oil demand will return to normal in the second quarter of 2020,” the agency’s flagship review published in March said.

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