Like OPEC, IEA cuts oil demand forecast by 300K barrels per day

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Sept. 15 (UPI) — Like OPEC a day earlier, the International Energy Agency said in a monthly report Tuesday that it expects global demand for oil to decline further for 2020 due to COVID-19.

The IEA projected in its September report that demand for the overall year will be 91.7 million barrels per day, more than 8 million barrels fewer per day than 2019 and 300,000 fewer than the previous forecast anticipated.

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The new outlook heavily cited the ongoing impact of the coronavirus pandemic on global travel and demand for oil.

“In Europe, the number of new cases has risen as the holiday season ends, though the rate of hospitalizations and deaths is lower than seen earlier this year,” the IEA report states. “Case numbers in the United States are falling and the situation seems to be improving in Japan and Korea. However, in various places, the situation is worrying and we are seeing localized lockdowns.”

An initial recovery that began earlier this summer has “flattened out,” the report notes.

“It is becoming increasingly apparent that COVID-19 will stay with us for some time.”

The IEA said the outlook for oil demand will continue to be “fragile” as the Northern Hemisphere begins the winter months — and noted “uncharted territory regarding the virulence of COVID-19” with widespread telecommuting and depressed air travel.

In its outlook on Monday, OPEC similarly cited the pandemic as a major factor in its revised projection of 400,000 fewer barrels per day for all of 2020.

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