IEA lowers global oil demand forecast for 2021

Oil barrels

The International Energy Agency (IEA) lowered its forecast for global oil demand for 2021, due to the resurgence in COVID-19 cases and renewed lockdown in a number of countries, restricting movement.

The Paris-based agency lowered its forecast for global oil demand by 0.3 million barrels per day (bpd) for 2021, amid expectations that world oil demand will recover by 5.5 million bpd to 96.6 million bpd this year.

Global oil demand faced an unprecedented collapse of 8.8 million bpd in 2020, the statement added.

Global oil demand is expected to marginally slow during the first quarter of 2021 in the wake of tougher government plans to impose restrictions on travel. The IEA hence lowered its forecast for oil demand by 0.6 million bpd to 94.1 million bpd for Q1 2021.

The global vaccine roll-out is putting fundamentals on a stronger trajectory for the year, with both supply and demand shifting back into growth mode following 2020’s unprecedented collapse, IEA stated.