IEA revises 2020 oil demand projection higher for second month in a row

Oil

The International Energy Agency (IEA) has revised its 2020 oil demand forecast up by 500K b/d from its May report to 91.7M b/d, but y-o-y this is still down 8.1M b/d.  The upward revision was based on data which showed demand destruction in the early part of the year due to COVID-19 was slightly less than expected, although still unprecedented. 

 For 2021, the IEA expects consumption to rise by 5.7M b/d y-o-y, the largest annual increase ever recorded, with 1.2M b/d of this growth predicted to come from the US. However, it will still be 2.4M b/d below 2019 levels. Reduced jet and kerosene use is set to impact oil demand until at least 2022.