IEA sees new European lockdowns denting oil demand outlook

By Noah Browning
LONDON, Nov 9 (Reuters) - Renewed lockdown measures in
Europe aimed at containing a rise in COVID-19 cases appear set
to push the outlook for global oil demand toward the downside,
an official with the International Energy Agency (IEA) said.
Keisuke Sadamori, IEA director for energy markets and
security, told Reuters the impact would, however, likely be less
severe than under lockdowns earlier in the year.
"Major parts of the European continent are in lockdown. This
would surely work toward the negative side," he said in an
interview, but stopped short of saying the group would formally
lower its forecast.
"We certainly expect this time for there to be a lower
impact than the last lockdown ... This time schools are kept
open and some of the stores are still open."
Oil prices have recovered from sharp falls earlier in the
year to hover around $40 a barrel LCOc1 but demand fears
persist, while markets remain on edge over a knife-edge U.S.
election result which appears headed for legal challenges.
IEA/M
"The oil and gas industry, in the U.S. in particular, is
looking at the outcome of this election with a huge amount of
interest," Sadamori said.
"If the Democrats plan for radical energy low-carbon
transformation -- if the Senate remains in the hands of
Republicans, there will be obstacles to that legislation.
Overall, we need to see the entire outcome."
The IEA kept its 2020 and 2021 oil demand forecast steady in
its monthly report on Oct. 14, before major European countries
including Germany, France and the United Kingdom imposed strict
new curbs on movement to check the spread of the virus.
The Paris-based agency is set to publish its next analysis
of the oil market on Thursday.
China remains the world's major bright spot after
suppressing the virus earlier this year and is on track to be
the only major country to boost its year-on-year demand for oil,
Sadamori said.
Products demand presents a mixed picture, he added, with jet
fuel and kerosene continuing to suffer but diesel, fuel oil and
gasoline performing better.