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UPDATE 1-Vaccine impact on moribund oil demand is several months away - IEA

Published 15/12/2020, 10:02
© Reuters.

LONDON, Dec 15 (Reuters) - The roll-out of vaccines this
month to combat the coronavirus pandemic will not quickly
reverse the destruction wrought on global oil demand,
International Energy Agency (IEA) warned on Tuesday.
"The understandable euphoria around the start of vaccination
programmes partly explains higher prices but it will be several
months before we reach a critical mass of vaccinated,
economically active people and thus see an impact on oil
demand," the IEA said in its monthly report.
"In the meantime, the end of year holiday season will soon
be upon us with the risk of another surge in COVID-19 cases and
the possibility of yet more confinement measures."
The Paris-based watchdog revised down its estimates for oil
demand this year by 50,000 barrels per day (bpd) and for next
year by 170,000 bpd, citing scarce jet fuel use as fewer people
travel by air.
Europe accounts for much of the backslide, with demand set
to be lower in the fourth quarter compared with the third due to
renewed lockdown measures.
Global oil stocks, which have mounted as consumption
faltered during the pandemic, will finally reach a deficit
compared to pre-crisis levels at the end of 2019 by July, the
IEA added.


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