UPDATE 2-IEA says oil demand recovery set to slow for rest of 2020

Published 15/09/2020, 09:05
© Reuters.

(Adds detail, graphics)
By Noah Browning
LONDON, Sept 15 (Reuters) - The International Energy Agency
(IEA) trimmed its 2020 oil demand forecast on Tuesday, citing
caution about the pace of economic recovery from the pandemic.
The Paris-based IEA cut its 2020 outlook by 200,000 barrels
per day (bpd) to 91.7 million bpd in its second downgrade in as
many months.
"We expect the recovery in oil demand to decelerate markedly
in the second half of 2020, with most of the easy gains already
achieved," the IEA said in its monthly report.
"The economic slowdown will take months to reverse
completely ... in addition, there is the potential that a second
wave of the virus (already visible in Europe) could cut mobility
once again."
Renewed rises in COVID-19 cases in many countries and
related lockdown measures, continued remote working and a still
weak aviation sector are all hurting demand, the IEA said.
China - which emerged from lockdown sooner than other major
economies and provided a strong prop to global demand -
continues a strong recovery, while a virus upsurge in India
contributed to the biggest demand drop since April, the IEA
said.
Increasing global oil output and the downgraded demand
outlook also mean a slower draw on crude oil stocks which piled
up at the height of lockdown measures, it added.
The agency now predicts implied stock draws in the second
half of the year of about 3.4 million barrels per day, nearly
one million bpd less than it predicted last month, with July
storage levels in developed countries again reaching record
highs.
However, preliminary data for August showed industry crude
oil stocks fell in the United States, Europe and Japan.
As output cuts eased among producers from the Organization
of the Petroleum Exporting Countries (OPEC) and allies such as
Russia, global oil supply rose by 1.1. million bpd in August.
After two months of increases, recovery among countries
outside the OPEC+ pact stalled, with production in the United
States falling 400,000 bpd as Hurricane Laura forced shut-ins.



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Global Oil Supply https://tmsnrt.rs/3bXxeuq
World Oil Products Demand https://tmsnrt.rs/3hA3PHU
OECD Oil Industry Stocks https://tmsnrt.rs/3kjwrXE
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