IEA revise down 2021 demand forecast due to COVID-19 resurgence

Oil

Following the rapid spread of the COVID-19 Delta variant across the globe, the International Energy Agency (IEA) has lowered its global oil demand forecast for 2021 by 0.3M b/d to 96.2M b/d compared to its previous report. The report implied prolonged lockdowns and increased travel restrictions, particularly in Asia, are expected to reduce end-user oil use. As such, global oil demand is forecast to rise 5.3M b/d y-o-y in 2021 and 3.2M b/d y-o-y in 2022.