IEA predicts recovery in oil prices at least in a year

US, WASHINGTON (ORDO NEWS) — World oil demand will recover to levels that were observed before the coronavirus pandemic and the fall of the energy market, only after a year or even later, the head of the International Energy Agency (IEA) said, Bloomberg reports.

Crude oil demand of 100 million barrels per day before the pandemic plummeted by about 30% last month.

The IEA, which predicts a decline in demand this year by an average of about 9 million barrels per day, will update its forecast for markets on Thursday.

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“When I look at the numbers, they are still very worried,” said Fatih Birol, the agency’s executive director, in an interview with Dubai-based Gulf Intelligence consulting company.

According to Birol, any increase in demand will occur in the second half of the year, as some countries will begin to remove restrictive measures and resume economic activity.

Over the past two weeks, oil prices, which have fallen by more than half this year to about $ 30 per barrel, have recovered somewhat as the countries of the OPEC + agreement began to cut production to cope with the oversupply.

According to Birol, if prices recover to more than $ 40 per barrel, production from shale oil fields may increase. This will indicate that “it is too early to write an obituary of shale oil,” he said.

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