IEA Warns Global Oil Demand to Remain Weak as Air Travel Fails to Return Normalcy

The 2020 oil demand has been revised down the estimates by 50,000 bpd and by 170,000 bpd in 2021, reflecting scarce jet fuel use as fewer people travel by air, said International Energy Agency (IEA)

 

The demand for gasoline and diesel is expected to return to 97-99% of their pre-pandemic levels in 2021. 

 

However, the roll-out of coronavirus vaccines will not quickly reverse the destruction wrought on global oil demand as it will be several months before a critical mass of vaccinations.

 

“In the meantime, the end of year holiday season will soon be upon us with the risk of another surge in Covid-19 cases and the possibility of yet more confinement measures.”, warned on IEA Oil Market Report.

 

Oil demand will remain weak in the short-term, while for the year as a whole, demand globally will be 91.2 million bpd, which is below the 2019 level, showing a recovery from its trough in 2Q20, but in 4Q20 it remains 6.2 million bpd down YoY due to the impact of the second wave of lockdowns.