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Energy Agency: Global for oil dropped with the return of the outbreak of (Covid19)

12-11-2020

On Thursday, the International Energy Agency reduced its forecast for the growth of global demand for oil this year due to the resurgence of the outbreak of the (Covid19) in Europe and the united state at the same time, also it is likely that next year will witness a modest recovery. The Agency said in the Oil Market Report that there is a possibility that the demand for oil this year will reach 91.3 million barrels per day which represents a decrease of about 8.8 million barrels compared to 2019, also, it is less than 400,000 barrels per day than last month’s expectations. It added that demand is expected to recover next year by 5.8 million to reach 97.1 million barrels. The agency indicated that this recovery would put global demand at the level of 3 million barrels per day which is lower than its level before the pandemic specially since the oil prices had recovered earlier due to the rumors about the possibility of a vaccine for the virus. The report indicated that vaccines are not likely to boost demand significantly until next year, noting that global oil supply increased by 200,000 barrels per day to reach 91.2 million barrels during the past month and the production levels from countries participating in the Organization of Exporting Countries agreement Oil (OPEC) and its allies have been largely static. The report indicated that the compliance rate reached 103 percent by (OPEC) and its partners and it is likely that global oil supplies will rise in November, in light of Libya and the United States increasing their production.