Oil Prices Fall after IEA Reveals Global Oil Demand to Plunge to 1995 Levels

Oil prices on Wednesday dropped again after the International Energy Agency (IEA) pointed out that it expects global oil demand to fall by 29 million barrels per day this month to a level last seen in 1995 as lockdown measures to control the coronavirus spreading.

 

As of 15:48 local time in Thailand, the price of WTI was at $19.63/bbl, fell $0.48/bbl or 2.39%. Meanwhile, Brent was traded at $28.41/bbl, decreased $1.20/bbl or 4.05%.

 

IEA estimated the oil demand across the world to fall by a record 9.3 mb/d year-on-year in 2020 due to the impact of restriction movement regulations in 187 countries and territories. IEA stated on the Oil Market Report – April 2020 that for the overall 2Q20, demand is expected to be 23.1 mb/d below year-ago levels. The recovery will be gradual begin from June, but in December demand will still be down 2.7 mb/d y-o-y.

 

IEA also warned that the recent agreement of cutting production cuts by the Opec+, will not outweigh this shrink in demand.