IEA slashes oil demand growth outlook
Global oil demand is expected to fall by a record 9.3M b/d y-o-y in 2020, according to the International Energy Agency (IEA) in its latest Oil Market Review. This compares with a decline of 90K b/d in its March report. April is estimated to see the largest decline, with demand down 29M b/d y-o-y, the lowest level since 1995. Demand will steadily recover from May onwards but is still expected to be below last years levels in December.
Refinery runs are expected to drop by 16M b/d y-o-y in 2Q20, as a result of widespread run cuts and shutdowns in all regions. Despite lower refiner runs, product stocks are still expected to build by 6M b/d.