IEA revises 2020 oil demand higher for third consecutive month

Oil

The International Energy Agency (IEA) has revised its 2020 oil demand forecast up by 360K b/d from its June report to 92.1M b/d, with y-o-y demand predicted to decline by 7.2M b/d. China’s 2020 oil demand was revised up by the most, increasing by 220K b/d m-o-m to 13.49M b/d. The European demand outlook was also raised to 12.81M, an increase of 170K b/d compared to the June report, following the reduction of coronavirus lockdown measures.

For 2021, the IEA expects global demand to rise by 5.3M b/d y-o-y to 97.4M b/d, a slight downward revision of 30K b/d. This is 2.6M b/d lower than 2019 levels, with the IEA stating that three-quarters of this deficit will be due to slashed jet/kerosene fuel consumption.