London
Oil consumption is set to recover from the impact of coronavirus more slowly than previously thought, even though the worst of the demand destruction doesn’t look quite as awful as had been feared a month ago. Global demand will still be below pre-pandemic levels by the end of 2021, never mind this year, according to the two major forecasting agencies whose outlooks extend that far.
The International Energy Agency, the Organization of Petroleum Exporting Countries and the US Energy Information Administration have all updated their oil market forecasts in the past 10 days and the IEA has extended its view out to the end of 2021. It makes grim reading for producers that might have been hoping for a swift recovery in demand back to the levels seen before the Covid-19 pandemic triggered the biggest-ever slump in oil consumption.—Bloomberg
